HIGH QUALITY PRIME CAR SHOWROOM INVESTMENT SHOWROOM CAR PRIME HIGH QUALITY BMW & Mini 501 DUNSTABLE ROAD � LUTON � LU4 8QN A14 Northampton A428 CAMBRIDGE Investment Summary. Location.A5 A11 Bedford M1 A1 A421 Excellently positioned fronting A43 Situated on the Madford onto the A505, the main arterial Retail Park, 2 miles north west Milton Keynes route which leads directly from of Luton Town Centre, 20 miles the M1 (J11), 1 mile to the west, to south east of Milton Keynes A6 the centre of Luton M11 A5 A10 Two adjoining modern glazed showrooms, refurbished in 2016 Floor Area: 37,400 sq ft Stevenage Luton 80 display bays (293 in total) Site Area: 2.3 acres A41 A418 11 Workshops and large parking (29% site coverage) provisions Aylesbury A1(M) M1 Single let to Ivor Holmes Limited A41 Harlow Guaranteed by Specialist Cars 21 21a Holdings Limited (D&B Rating AWULT: 17.8 yrs (to expiry) 4A1) M40 AGA from Pendragon PLC until Watford M25 Dec 2031 M25 Marketing Rent: RPI-linked annual rent reviews £ £310,277 pa (£7.85 psf) capped at 2.77% pa Refurbished in 2016 by the Tenure: Freehold tenant at a cost of £2 million Proposal We are instructed to seek offers for the freehold interest in excess of £5,550,000 subject to contract and exclusive of VAT. A purchase at this level would refl ect an attractiveNet Initial Yield of 5.25% and a low capital value of £148 per sq ft, after deducting purchasers costs of 6.61%. Site Plan. Site *boundary for indicative purposes only 2 BMW & MINI � 501 DUNSTABLE ROAD, LUTON, LU4 8QN 17 16 TO LONDON M1 LUTON STATION 15 J11 14 TO LONDON Sovereign Park 12 13 Bilton Way 9 Industrial Estate 10 11 Local 7 8 Occupiers. 6 2 5 1 1. Currys PC World, McDonalds & Next Madford Retail Park 2. Arriva 3. Tyre City 3 4. The Range 4 5. Pizza Hut A505 6. KFC 7. Hatters Way Retail Park 8. SCS Sofa 9. Hertz, B&Q, Trade Point 10. Aldi 11. SOS Direct Mail 12. Screwfi x TO M1 (J11) 13. SH Pratt Group 14. Bestway Cash & Carry 15. Toyota 16. Vauxhall 17. London Luton Airport BMW & MINI � 501 DUNSTABLE ROAD, LUTON, LU4 8QN 3 Tenancy Information. Total Area Lease Lease Break Next Rent review Contracted Contracted Property Tenant Name Guarantor Sq Ft Start Expiry Option Review mechanism Rent pa Rent psf* BMW & Mini, 501 Specialist Cars Ivor Holmes Annual RPI Dunstable Road, Luton, Holdings Limited 37,400 22-Oct-2006 21-Dec-2036 - 25-Dec-2019 £310,277 £7.85 Limited capped 2.77% LU4 8QN (D&B Rating 4A1) *Rent psf apportioned on the basis that external car display bays and compounds are rentalised separately. Rental breakdown available on request. Rent Review Provision. Covenant. Accommodation. Annual rent reviews on 25 December which are calculated as The property was assigned in to Ivor Holmes Limited (N2) The building has been measured in accordance the lesser of the rent payable immediately before the review in 2017. Pendragon PLC (D&B Rating 5A1) are providing an with the RICS Code of Measuring Practice (Sixth date (“the Rent”) subject to RPI linked increases and the Rent AGA for the remainder of the original lease to December Edition) and provides the following Gross Internal multiplied by 102.77%. The reversionary lease, commencing 2031. A reversionary lease has been agreed to extend the Areas: December 2031 has a day one rent review and no further reviews. term by 5 years to December 2036. The reversionary lease is guaranteed by Specialist Cars Holdings Limited (D&B Rating 4A1), and are one of the largest privately owned Accommodation Sq M Sq Ft Franchise Information. BMW and MINI dealers in the UK. GROUND FLOOR: Financial Summaries are set out below. BMW and Mini are part of the BMW Group, which also Showroom & Ancillary 1,476 15,908 encompasses Rolls Royce. In the UK, BMW has a market share of 7.3% (Dec 2018), an increase on the 2017 figure of 6.9%. Similarly, IVOR HOLMES LTD 31-Dec-15 31-Dec-16 31-Dec-17 Workshops, Parts & Valet 1,215 13,061 Mini’s market share also increased in 2018 to 2.8% (Dec 2018), up from 2.7% in the previous year. BMW sold 172,048 new cars in 2018, TURNOVER £36,029,404 £37,689,599 £37,483,646 FIRST FLOOR: placing them 5th in the UK by market share, and Mini sold 67,021 PROFIT /(LOSS) -£356,240 -£502,648 -£462,377 Office Areas & Ancillary 783 8,431 new cars, placing them 14th. BEFORE TAX TOTAL GIA 3,474 37,400* TANGIBLE NET - - - BMW Group have invested nearly £2 billion in its UK operations WORTH since 2000. MINI was ranked as the 7th best-selling car of 2018, Display Parking 80 with 44,904 registrations. They are ranked 5th overall in the SEPCIALIST CARS 31-Dec-15 31-Dec-16 31-Dec-17 Customer & Additional Parking 158 Summer 2018 Dealer Attitude Survey with a score of 7.5 (average HOLDINGS LTD score 5.7), with BMW ranked 11th with a score of 6.0. BMW was an TOTAL PARKING 238 SPACES early entrant to the electric vehicle game having launched the TURNOVER £196,946,253 £196,210,755 £178,175,906 i3 in 2017. BMW’s electric vehicle range has since been added PROFIT /(LOSS) £2,162,267 £1,911,892 £926,184 *Including 2,259 sq ft of tenant improvement works to with two hybrid sports cars; the i8 and i8 Roadster. Mini has a BEFORE TAX growing range of new car designs and updated technology, and TANGIBLE NET £17,597,585 £17,884,855 £19,514,398 has created a new electric car due to go on sale in 2019. WORTH 4 BMW & MINI • 501 DUNSTABLE ROAD, LUTON, LU4 8QN Nearby M1 ADULT CATCHMENT POPULATION Dealerships. Luton & Sundown A5 Industrial Estate 5 MILES North Luton 400,000 Industrial Estate 10 MILES FRANCHISE - DEALER Cradock 675,000 Industrial Estate A505 5 1. M1 Citroen & Subaru - Slip End Sovereign Garages TOTAL POPULATION 3 Park EARNING £20,000+ PA Cosgrove 2. Ford - Hartwell London Industrial Estate (AGE 18+ YEARS) 8 LUTON Luton 3. Hyundai - Perrys Airport 2 Royal London 6 7 5 MILES Mall M1 4. Mazda & Kia - Brayley 84,000 Firbank & Dalroad The Business Centre 5. Kia - Grovebury Cars Industrial Estates & Barratt Industrial 10 MILES Park 6. Toyota - Steven Eagell A5183 202,000 1 Capability Green 7. Vauxhall - Thurlow Nunn Business Park 8. Vauxhall - Thurlow Nunn M1 DRIVE TIME TO NEAREST TOWNS / CITIES 25 MINUTES MILTON KEYNES 4 (18 MILES) 30 MINUTES WATFORD (17 MILES) 35 MINUTES STEVENAGE (16 MILES) 45 MINUTES AYLESBURY (20 MILES) 45 MINUTES CAMBRIDGE (42 MILES) 55 MINUTES LONDON (36 MILES) M1 Automotive Market Commentary. THE BREAKDOWN OF UK CARS ON THE ROAD BY CAR AGE (2018) 7 years old + The UK used car market remains strong with 7.61 million vehicles sold in 2018. Although the number of used car sales showed a small decline of 2.2% year-on-year, the used car market remains approximately 3.2 times the size of the new car market. New car sales were marginally down in 2018 as a result of the lack of supply from 4-6 years old manufacturers which were hindered by the introduction of Worldwide Harmonised Light Vehicle Test Procedure. Despite the prevailing supply constraints, there were still 2.37 million new vehicle registrations in 2018 which is above the 10 year average of 2.35 million. Less than 3 years old The recent strong sales figures have been driven by increased petrol car sales (up 9% y-o-y), and Alternative Fuel Vehicle (AFV) sales (up 21% y-o-y). Registrations of AFVs have increased by 290% since 2015, highlighting their popularity amongst consumers 0% 10% 20% 30% 40% 60% which is pushing manufacturers to continually advance their technologies. There are 40 plug-in electric vehicles (EVs) now available in the UK market, with a further 20 due in 2019 alone. The drive for greener vehicles alongside regulatory change has instigated a structural Some dealerships are looking to reposition their properties by proactively rolling out shift in the automotive market. The majority of manufacturers now expect that a enhanced and consumer focussed aftersales services. The main determinant of this quarter of sales will be from EVs by 2023, as emphasised by average waiting times market is the number of vehicles on the road, which has risen 0.9% over 2018 to 34.6 with orders for a new factory ordered cars now taking 10-12 weeks, whilst wait times million vehicles. for EVs are often reported to be in excess of 6 months. The graph highlights that in 2018, 79% of cars on the road in the UK were over 4 years old. This underpins the strong demand for servicing, maintenance and repair, which continues to remain robust for safety, economic and performance reasons. Furthermore, this provides an opportunity for dealerships to expand and innovate their aftersales offering, and it is widely anticipated that automotive retailers will need to adopt these changers in order to maintain their respective market share. There is a distinction between the manufacturer and distributor sides of the UK motor industry which is particularly important in light of some recent notable manufacturing relocations and Brexit related noise. Not all the recent UK manufacturing relocations are Brexit related, with Honda’s recently relocating to Japan in order to better serve the larger Asian and US markets that account for 95% of their global sales.