Vw Huddersfield Leeds Road | Huddersfield | Hd2 1Ul

VW HUDDERSFIELD LEEDS ROAD | HUDDERSFIELD | HD2 1UL

Prime Automotive Investment Investment • Purpose built car dealership trading as Volkswagen Proposal We are instructed to seek offers in excess of £6,000,000 (Six Million Pounds). • Let to the strong covenant of Goodman Retail Limited, Summary A purchase at this level would reflect a subsidiary of Sytner Group Limited, guaranteed by a Net Initial Yield of 6.33%, assuming Volkswagen Group United Kingdom Limited purchaser’s costs of 6.63%. • Surrounding occupiers include Audi, Mercedes-Benz, Volvo, Land Rover, Toyota, Peugeot and Renault • WAULT of 7.75 years • Large site area with an extensive road frontage • Current passing rent of £405,000 pa subject to five yearly upwards only rent reviews to open market rental value • Total accommodation of circa 3,848 sq m (41,316 sq ft) on a site of approximately 2.42 acres (0.98 hectares) • Low site coverage of 16% • Virtual Freehold

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information Location Huddersfield is a large market town in West Yorkshire with a population of approximately 163,000. Situation The property is situated in an extremely prominent position on Leeds Road, an established dealership location with Audi, Mercedes-Benz, Volvo, Toyota, Land Rover, Peugeot and Renault within close The town is located approximately 20 miles (32 km) south west of Leeds, 27 miles (43 km) proximity to the subject property. north west of Sheffield and 28 miles (45 km) north east of Manchester. Leeds Road is a busy arterial road providing access from the M62 motorway, Dewsbury and Wakefield The town benefits from excellent road connectivity with the M62 motorway providing access in the north east to Huddersfield town centre in the south west. Junctions 23 and 24 of the M62 from Liverpool to Leeds, and the M1 motorway providing access from London in the south motorway are located 2 miles north west of the town. The A637 provides access to Junction 38 of to Leeds in the north, as well as the wider national motorway network. Leeds Bradford Airport the M1, located 11 miles to the east of Huddersfield. Due to its proximity to the wider motorway is located approximately 20 miles north of Huddersfield. Rail services run from Huddersfield network, Huddersfield is home to many company headquarters, including national retailers

to LondonA6068 via Wakefield in approximately 2 hours 50 minutes. Poundstretcher, situated adjacent to the subject property, and Mamas and Papas, situated to the north. Keighley A650 A658 LEEDS M1 Blackburn Burnley BRADFORD A629 M65 M621 A646 A1(M)

Halifax M62 Dewsbury Wakefield A644 A666 To A6033 LEEDS RD A638 Huddersfield A642 M62 HUDDERSFIELD M66 Rochdale Bolton A58 A62 Barnsley A629J25 M61 A635 M60 A644 M1 A580 MANCHESTER M62 A628 LEEDS RD

J24 M67 A641 M62 M18 To M62 J25

A56 LEEDS ROAD Stockport A629 A62 A61 A6 A640 M56 SHEFFIELD Huddersfield A629 M1

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information The property comprises a modern, purpose built Description vehicle showroom and servicing facility, constructed in 2002. It is principally of steel frame construction with full height glazing and flat panel clad elevations. Internally, the double height showroom is spacious containing a reception desk pod and 11 display spaces, with glazed partitioned offices, a customer waiting area, WCs and storage area. The accommodation benefits from a standard VW dealership fit out which was refurbished to the latest brand standards in 2014. Access to the workshop, MOT, service bays and parts store is via a glazed door from the showroom. Vehicular access to the workshop is via an automated roller shutter door on the frontage. The first floor, accessed via two staircases, is finished to a high standard and comprises a mezzanine open balcony with offices, a boardroom, store rooms and WC’s. The lower ground floor is used as a vehicle preparation area and body shop. Access is provided to the north of the site via a vehicle access ramp which also provides access to the under croft car parking below the car display area and car parking at ground floor level. Externally the property benefits from an extensive road frontage with approximately 48 customer spaces and a further two display spaces on brick paviours flanking the showroom entrance. There are two disabled car parking spaces and some 32 marked external display spaces. A large part of the car park is not marked out but utilised for display spaces. To the rear of the property on the lower level, there are car parking spaces for approximately 60 vehicles. There is a secure compound to the south of the site used for staff car parking with 27 marked bays. There is a secure yard to the north of the site utilised by the tenant which lies outside of the demise of the subject property. We understand this site is owned by the tenant.

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (Sixth Edition) to provide the following approximate gross internal areas (GIA):

Accommodation SQ M SQ FT Ground Floor Showroom 523 5,613 Workshop 517 5,553 Workshop Office 33 359 Office 51 548 Parts 74 792 Ancillary 108 1,160 1,306 14,025 First Floor Offices 238 2,555 Ancillary 131 1,407 Parts Mezzanine 73 784 Mezzanine 57 612 499 5,358 Lower Ground Floor Workshop 905 9,712 Open Fronted Wash Bay 79 851 Workshop (valeting) 444 4,767 Warehouse (car storage) 615 6,603 2,043 21,934

Total 3,848 41,316

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information Site Area The property has an approximate site area of 2.42 acres (0.98 hectares) with a low site coverage of approximately 16%.

Tenure The property is a virtual Freehold, let on a lease of 999 years at a rent of £10 per annum.

Tenancy The property is let to Goodman Retail Limited, guaranteed by Volkswagen Group United Kingdom Limited, on a full repairing and insuring lease for a term of 20 years from 21 December 2004. The passing rent is £405,000 per annum and is subject to review on every fifth anniversary of lease commencement, upwards only, to open market rental value.

Covenant Goodman Retail Limited (Tenant) Information The property is let in its entirety to Goodman Retail Limited (company number 3097514). Goodman Retail Limited is a subsidiary of Sytner Group, the UK’s largest Prestige Motor Dealer, founded in 1968. Volkswagen Group United Kingdom Limited (Guarantor) For the financial year ending December 2015, the tenant company (Goodman Retail Limited) reported a turnover of Volkswagen Group United Kingdom Limited (company number £840,424,000 and a pre tax profit of £17,497,000. The tenant 514809) has a Dun and Bradstreet rating of 5A1 indicating a financial has a Dun and Bradstreet rating of 4A2. strength of £35+ million and a minimum risk of business failure. Goodman Retail Limited’s latest published accounting Volkswagen Group United Kingdom Limited’s latest published information is as follows: accounting information is as follows:-

Financial Financial 31 Dec 2015 31 Dec 2014 31 Dec 2013 31 Dec 2015 31 Dec 2014 31 Dec 2013 Year End Year End

Sales Turnover £840,424,000 £781,224,000 £575,956,000 Sales Turnover £9,430,300,000 £8,868,400,000 £7,619,500,000 Profit / Loss Profit / Loss £17,497,000 £16,851,000 £11,161,000 £158,600,000 £154,700,000 £130,000,000 Before Taxes Before Taxes Tangible Net Tangible Net £28,482,000 £16,799,000 £19,565,000 £709,400,000 £725,300,000 £699,800,000 Worth Worth

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information UK Automotive Manufacturers and dealer network groups alike continue to improve UK Automotive The UK and European dealership investment market remains strong for their portfolios through redevelopment and relocation. Dealers are prime assets. Institutional and private equity firms demonstrated a strong Industry: under increasing pressure to upgrade their portfolios to comply with Industry: appetite to invest in the sector, attracted by the secure income profiles with Occupational the manufacturers’ corporate image requirements and accommodate Investment long leases let to manufacturers or dealer network groups, together with increasingly larger model ranges. This is certainly fuelling relocations the prevalence of guaranteed rental uplifts in many leases. and significant inward investment into upgrading existing facilities. Manufacturers and dealer network groups continue to drive yields on We therefore anticipate continuing strong occupier demand for prime stock achieving Net Initial Yields of sub 4.5% for best in class. In many well-located modern units in key strategic territories. instances, recent transactions have attracted strong interest resulting in purchase prices ahead of asking levels. According to the Society of Motor Manufacturers and Traders (SMMT), UK new car registrations in 2016 was in excess of 2.69 million units, With the limited supply of stock currently available, the market is forecast to (a year on year increase of 2.25%) following five years of consecutive sustain the strong investor demand, from both experienced institutions and growth, maintaining record levels post referendum. Volkswagen have private equity, together with new investors diversifying from other sectors. two best sellers within the top ten of new car registrations in 2016. We set out recent comparable investment transactions below:

Term Net Tenant Date Location Certain Price Initial (Guarantor) (years) Yield Sytner Lexus, Feb-17 Properties Ltd 6 £3,750,000 6.68% Leicester (Sytner Group Ltd)

VW, Volkswagen Dec-16 9 £3,230,000 6.01% Redditch Group UK Ltd

Kia, Allen Ford Oct-16 4 £1,875,000 7.28% Solihull (UK) Ltd

BMW & Sytner Sep-16 Volvo, 6 £8,900,000 6.79% Group Ltd Warwick

Vauxhall, Pendragon Apr-16 5 £2,350,000 6.50% York PLC

Tesla, Tesla Motors Mar-16 5 £1,858,000 7.09% Stockport Ltd

Investment Summary Location Description Site Area Tenancy UK Automotive Industry Proposal VW HUDDERSFIELD LEEDS ROAD, HUDDERSFIELD HD2 1UL Proposal Situation Accommodation Tenure Covenant Information VAT & EPC Further Information VAT The property has been elected for VAT and it is anticipated that the transaction will be treated as a Transfer Of a Going Concern (TOGC).

EPC An Energy Performance Certificate for the property is available upon request.

Proposal We are instructed to seek offers in excess of £6,000,000 (Six Million Pounds). A purchase at this level would reflect a Net Initial Yield of 6.33%, assuming purchaser’s costs of 6.63%.

Further For further information or to arrange an inspection, please contact: Information Rebecca James 020 7255 8040 [email protected] Rick McIntosh-Whyte 020 7255 8064 [email protected] Martin Carey 020 7255 8085 [email protected]

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