PRIME AUTOMOTIVE INVESTMENT Silverlink Business Park, Middle Engine Lane, Newcastle Upon Tyne, NE28 9NZ
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PRIVATE CLIENT PRIME AUTOMOTIVE INVESTMENT Silverlink Business Park, Middle Engine Lane, Newcastle upon Tyne, NE28 9NZ 15 years unexpired let to Honda (no breaks) with fixed uplifts PRIVATE CLIENT INVESTMENT CONSIDERATIONS ■ The property occupies a prominent position within ■ Annually compounded 2% fixed uplifts every 5 years ■ Offers sought in excess of £3,310,000 (Three Million an established Automotive Business Park just outside with a minimal rental uplift to £233,768 pa in 2023 Three Hundred and Ten Thousand Pounds) subject of Newcastle City Centre ■ Let until 2033 with no breaks to contract and exclusive of VAT. This reflects a net ■ Let to the excellent covenant of Honda Motor Europe initial yield of 6%, after allowing for purchaser’s costs ■ Expanding Business Park with a new Jaguar showroom of 6.52%. Limited who reported an annual turnover of £5.9 being constructed opposite the subject property billion in 2018 with a pre-tax profit of over £112 million The investment shows the below yield profile based ■ Surrounding occupiers include Aston Martin, Porsche, ■ on the fixed uplifts: Currently sub-let to Vertu Motors trading as Audi, Bentley, Mini, Toyota, BMW and Volkswagen a Vertu Specialist Cars dealership Date NIY ■ Extensive site area of approximately 1.376 acres (0.56 24th June 2018 6.00% ■ Current rent passing £211,731 pa hectares), providing a low site coverage of circa 19% 24th June 2023 6.63% ■ 24th June 2028 7.32% Freehold ■ The property provides 12,677 sq ft GIA (1,178 sq m) of car showroom, workshop space and ancillary accommodation PRIVATE CLIENT VERTU SPECIALIST CARS, SILVERLINK BUSINESS PARK, PRIME AUTOMOTIVE INVESTMENT 15 YEARS UNEXPIRED MIDDLE ENGINE LANE, NEWCASTLE UPON TYNE, NE28 9NZ LET TO HONDA (NO BREAKS) WITH FIXED UPLIFTS LOCATION Located on the north bank of the River Tyne, the City of Newcastle-upon-Tyne is the regional and economical capital of the North-East of England. The City benefits from some 280,000 residents and forms part of the wider Tyneside conurbation. Newcastle is the North East’s primary retailing, leisure and office destination and is located approximately 280 miles (451 km) north of London, 100 miles (160 km) north of Leeds and 109 miles (175 km) south of Edinburgh. Whitley Bay Newcastle A1056 A192 The City benefits from excellent transport links being located in close proximity to the International A19 A1 and A19, providing access to both the north and south of the UK and the A69 Airport East Brunton A193 connecting the city to Carlisle and Cumbria to the west. Rail services are provided North via the East Coast Mainline from Newcastle Central with quickest journey times to Gosforth Sunderland, Edinburgh and London Kings Cross of 19 minutes, 1 hour 27 minutes, A191 A189 and 2 hours 50 minutes respectively. Newcastle International Airport is located 6 A1 North miles north west of the City Centre on the outskirts of Newcastle. The airport handles Gosforth Longbenton Shields approximately 4.8 million passengers annually with direct routes to 80 UK, European A696 and International destinations. South Gosforth A1058 South Shields A188 A187 A186 A69 A6085 Wallsend A167 NEWCASTLE A191 UPON TYNE A183 Arthur's Hill A193 Hebburn A186 A185 A1018 Byker Jarrow A695 A1300 Blaydon South A194 Tyneside Gateshead A184 A1 Dunston A19 A194(M) A167 A195 A1231 PRIVATE CLIENT VERTU SPECIALIST CARS, SILVERLINK BUSINESS PARK, PRIME AUTOMOTIVE INVESTMENT 15 YEARS UNEXPIRED MIDDLE ENGINE LANE, NEWCASTLE UPON TYNE, NE28 9NZ LET TO HONDA (NO BREAKS) WITH FIXED UPLIFTS Vertu Specialist Cars Newcastle, Silverlink Business Park, Middle Engine Lane, Newcastle upon Tyne NE28 9NZ Pond SITUATION DESCRIPTION The property is situated on Silverlink Business Park in North Tyneside, The property comprises a modern, purpose built vehicle showroom and servicing a well-established and successful dealership location adjacent facility constructed in 2006, incorporating showroom, offices, workshop, parts to the A19 and A1058 Coast Road. Newcastle City Centre is and ancillary accommodation. The showroom is arranged over ground and first Shelter approximately 6 miles east of the property with both Sunderland floor levels providing full visibility of Middle Engine Lane and Cobalt Park Way. Garage and Teesside being easily accessible via the A19 trunk road. The property is of steel frame construction with full height glazing and flat panel The property is located in an extremely prominent position on the profile clad elevations and provides a total GIA of approximately 12,677 sq ft. roundabout between Middle Engine Lane and Cobalt Park Way Internally the showroom is fitted to a high specification throughout and benefits from adjacent to the Aston Martin dealership and opposite the Bentley a ground floor double height glazed showroom with prominent reception desk, four Lighting Tower and Audi car dealerships. The UK’s largest business park, Cobalt glazed partitioned offices, customer waiting area, handover bay, WCs and internal Park, is located adjacent to the subject property which benefits storage. To the rear of the ground floor is the secure parts department and the car from 1,618,000 sq ft of office accommodation and approximately servicing workshop. The workshop comprises 6 individual bays which are all self 14,000 staff. The Silverlink Shopping Park scheme is located just to contained benefiting from automated roller shutter door vehicular access from Garage the south of the property with occupiers including Odeon, Marks & the rear. In total the workshop has 6 servicing ramps and one MOT ramp which Spencer, Nando’s, JD Sports and a number of national occupiers. can be viewed from the MOT viewing point to the rear of the showroom. The Business Park benefits from excellent public transport links, The first floor is accessed via the main staircase in the showroom and comprises with a regular bus service from Newcastle City Centre and also an open plan mezzanine level with further glazed partitioned offices and internal El Sub Sta access to nearby Metro Stations, which serve Tyne and Wear. storage. Externally to the rear of the property is a separate valet building which As one of the premier motor retailing destinations in the north provides two wet and two dry valeting bays. The property provides a total of 65 east, Silverlink Business Park benefits from a cluster of automotive display car spaces, 6 internally, with further extensive parking to the side and use e Ho antil occupiers including Porsche, Audi, Bentley, Mini, Aston Martin rear of the property for cars that are sold, to be or in need of servicing and new Merc Toyota, BMW and Volkswagen, alongside a number of multi-brand arrivals that are to be processed. There is a piece of land to the south of the car dealerships. property that is used for further parking but is not included in the sale. Jaguar Land Rover are building a new showroom opposite the The property was fully refurbished in 2014 to Infiniti’s standard corporate property further confirming the business park as an automotive branding, however, the subtenant Vertu is currently in the process of re-branding location. to their own Specialist Cars corporate styling. 0m 10m 20m 30m ©Ordnance Crown Survey Copyright, © Crown Copyright ES 100004106. 2018. All rights reserved. For Licenidentificationce number 100022432. purposes Plotted Scale only. - 1:1250 PRIVATE CLIENT VERTU SPECIALIST CARS, SILVERLINK BUSINESS PARK, PRIME AUTOMOTIVE INVESTMENT 15 YEARS UNEXPIRED MIDDLE ENGINE LANE, NEWCASTLE UPON TYNE, NE28 9NZ LET TO HONDA (NO BREAKS) WITH FIXED UPLIFTS SITE AREA The site extends to approximately 1.376 acres (0.56 hectares) with a low site coverage of 19%. TENURE The property is held Freehold. TENANCY The property is let in its entirety to Honda Motor Europe Limited on a full repairing and insuring lease, for a term of 25 years from 23rd June 2008 at a current rent passing of £211,730.99 pa. The unexpired lease term is therefore approximately 15 years. The rent is subject to fixed uplifts equal to the higher of either 2% pa compounded or open market rent, receivable 5 yearly. This would guarantee a minimum uplift to £233,768 pa at the next rent review in 2023. The property was sublet to Vertu Motors (Property) Ltd in July 2014 and the property is now operating as a Vertu Specialist Cars dealership. ACCOMMODATION* The property provides the following areas: Ground Area Sq m Area Sq Ft Showroom 326.25 3,512 Office 52.35 563 Handover 55.52 598 Ancillary 53.95 581 Workshop 287.48 3,094 Parts 43.39 467 Valet 51.07 550 Covered Valet 50.05 539 First Area Sq m Area Sq Ft Ancillary 124.72 1,342 Parts Mezzanine 52 560 Office 80.95 871 Total 1,178 12,677 *Measurements have been provided by the vendor, any interested party should carry out their own measured survey. PRIVATE CLIENT VERTU SPECIALIST CARS, SILVERLINK BUSINESS PARK, PRIME AUTOMOTIVE INVESTMENT 15 YEARS UNEXPIRED MIDDLE ENGINE LANE, NEWCASTLE UPON TYNE, NE28 9NZ LET TO HONDA (NO BREAKS) WITH FIXED UPLIFTS COVENANT Honda Motor Europe Ltd is a wholly owned subsidiary of Honda Turnover at Honda Motor Europe Ltd grew to £5.9 Honda Motor Europe Limited have provided the following accounts: Motor Company (Japan), one of the world’s leading manufacturers billion in the 12 months ending 31 March 2018, up 31 Mar 2018 31 Mar 2017 31 Mar 2016 of motor cars, motorcycles and power products, with a market from £5.2 billion 2017. Pre-tax profit also soared to capitalisation of $46.85 billion USD. The principal function of Honda £112.55 million from £73.29 million the year before. Turnover £5,918,931,000 £5,211,258,000 £4,056,096,000 Motor Europe Ltd is to coordinate Honda’s operations in Europe, Profit before taxes £112,553,000 £73,293,000 £31,733,000 including the manufacturing of vehicles and components as well as The subtenant Vertu Motors (Property) Ltd is a distribution, wholesale and retail activities.