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HONDA MOTOR EUROPE LIMITED778-780 CHESTER ROAD, MANCHESTER M32 0QL
FREEHOLD CAR DEALERSHIP INVESTMENT
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
INVESTMENT SUMMARY
• ArecentlydevelopedHondacardealershipservingtheManchesterconurbation.
• ThepropertyoccupiesaprimearteriallocationfrontingtheA56,twomilessouthwest ofthecitycentre.
• Theareaisanestablishedlocationformotortradeandoutoftownretailing.
• TheentirepropertyislettoHondaMotorEuropeLtduntilApril2031(16.5 years unexpired).
• Allrentreviewsincorporateaminimumupliftbasedon2.5%perannumcompounded.
• Offersinexcessof£5,080,000,subjecttocontract,reflectinganetinitialyieldof5.3% risingtoaguaranteedminimumof6%inApril2016.
HONDA SHOWROOM HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
LOCATIONManchesteristhedominantregionalcityintheNorthWestofEnglandandistheUK’slargesteconomiccentreoutsideofLondon.Thecityislocatedapproximately200milesnorthofLondon,90milesnorthofBirmingham,44mileswestofLeedsand35mileseastofLiverpool.
Thecitybenefitsfromanexcellentcommunicationsnetwork.TheM62TransPenninemotorwayrunstothenorthofthecitylinkingwithJunction21AoftheM6tothewestandLeedsandtheM1totheeast.TheManchesterOrbitalMotorwayistheM60whichhasjunctionswiththeM56,theM61andtheM66.Byrail,ManchesterPiccadillyoffersadirectservicetoLondonEustonwithanaveragejourneytimeofapproximately2hours10minutes.
Manchesteralsobenefitsfromasuccessful,moderntramservice,theMetrolink.Thesystemhasanestimated25millionpassengerjourneysperyearandhasextensivecoverageacrosstheGreaterManchesterconurbationfollowingrecentadditionstothenetwork.
ThesubjectpropertyislocatedwithintheadministrativeareaofTraffordCouncil,justoutsidetheadministrativeboundaryofManchesterCityCouncil.The2011CensusestimatedthatTraffordandManchesterhadresidentpopulationsof226,600and503,127respectively.Thepropertythereforehasacaptivesurroundingpopulationtotallingalmost730,000.
SITUATIONThepropertyissituated2.5milessouthofManchestercitycentrewithanextensivefrontagetotheA56,ChesterRoad,whichisoneofthemaindualcarriagewayroutesintothecitycentrefromtheprosperoussuburbsofAltrinchamandCheshiretothesouth.Theareaisanestablishedcommerciallocationwithanumberofretailandmotortradeoccupiersintheimmediatevicinity.
DirectlyoppositethesubjectpropertyisalargeArnoldClarkVauxhalldealership,whilstwithinhalfamiletothenorthisanEvansHalshawForddealershipandamodernfacilityforAudi.Also,adjoiningthesubjectpropertyistheheadofficeofLookersPlc,aleadingautomotiveretailer.
ChesterRoadisanestablishedretailwarehouselocationwithPCWorldbeingsituatedapproximately200yardsnorthofthesubjectproperty.Additionally,afurtherhalfamilenorthistheCastlemoreRetailParkandtheWhiteCityRetailPark.TheareahasimprovedfurtherasaretaillocationwiththerecentdevelopmentofaTescoExtrasuperstorewithin400yardstothenorthonChesterRoad.
TheOldTraffordstadiumsofbothManchesterUnitedandLancashireCountyCricketClubarelocatedcloseby.
M62
M6
M6
M60
A57
A56
A556
A34A6
A56
A5103
M602
M60
M56
M60
M67
STOCKPORT
ALTRINCHAM
SALFORD
MANCHESTERAIRPORT
STRETFORD
MANCHESTER
8
19
21
5
7
3
24
11
19/20/20A
TALB
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WA
RW
ICK
RO
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SIR
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SB
Y W
AY
BO
YE
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TR
EE
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UN
ITED
RO
AD
B5
188
CANALSIDENORTH
UNITEDTRADINGESTATE
OLD TRAFFORDLANCASHIRE CCC
METR
OLIN
K
MANCHESTERCITY CENTRE
2 MILES
WH
ITE
CIT
Y W
AY
A5063
A5067
A5081A5081
A5081
A50
63
A56
A56
M602.5 MILES
OLD TRAFFORDMAN UTD FC
MET
ROLI
NK
WHITE CITYRETAIL PARK
CASTLEMORERETAIL PARK
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
DESCRIPTIONThepropertycomprisesamodern,flagshipcardealershipfacilityforHondabuiltin2012withanextensivefrontagetoChesterRoad.CustomeraccessintothesiteisfromtheA56,withasecondaryaccesspointattherearfromBurleighRoad.
Themaindealershipbuildingcomprisesafullyglazed,doubleheightshowroomareatothefront,finishedtoahighspecificationinaccordancewithHonda’scorporateidentity.Thissalesareaincludesacustomerwaitingarea,ancillarysalesofficesandahandoverbay.Theshowroomcanaccommodateaminimumof10newdisplayvehicles.
Theremainderofthegroundfloorcomprisesaworkshop,partsstoreandstaffaccommodation.Theworkshopaccommodates6workramps,togetherwithaseparateMOTbay.Atfirstfloorisameetingroom.
Totherearofthedealershipbuildingisanewlybuiltself-containedvalet/washbay.Inthewesterncornerofthesiteisanolder,formervalet/partsbuildingwhichthetenantisnotcurrentlyutilising.
Thedealershiphasanexcellentcarparkingprovision.Thereareapproximately52displayspacesadjoiningthedealershipbuildingandfrontingChesterRoad,togetherwith15markedcustomercarspaces.Thereisparkingcapacityforatleastanother60vehiclesonthesite,someofwhichcouldbeusedforfurthervehicledisplay.
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
ACCOMMODATIONThepropertyprovidesthefollowinggrossinternalareas:-
GIA sq ft GIA sq m
GROUND FLOOR SHOWROOM/OFFICES
8,081sqft 750.7sqm
WORKSHOP/PARTS/ANCILLARY 5,322sqft 494.4sqm
FIRST FLOOR MEETING ROOM 254sqft 23.6sqm
REAR VALET/WASH BAY BUILDING 1,821sqft 169.2sqm
SELF-CONTAINED WORKSHOP/VALET BUILDING
4,746sqft 440.9sqm
TOTAL GIA 20,224 sq ft 1,878.8 sq m
Thepropertyoccupiesasiteof1.77acres(0.72hectares)givingasitecoverofonly26%.
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
PLANNINGThemaindealershipbuildingwasconstructedinaccordancewithaDecisionNoticedated13thMarch2012forthe“demolitionofexistingcarshowroomandworkshopbuildingandproposederectionofnewdetachedcarshowroom,workshopwithMOTbay.Erectionofseparatevaletandwashbayunit.Alterationstolayoutofexternalvehicledisplayandparkingareas”.
TENUREFreehold
TENANCY TheentirepropertyislettoHonda Motor Europe Limited foratermof20 years from 15 April 2011onfullrepairingandinsuringterms(theself-containedworkshop/valetbuildingissubjecttoaScheduleofCondition).
Thepassingrentis£285,000perannumwhichissubjecttofiveyearlyupwardonlyrentreviews,thenextbeingon15April2016.Thepassingrentistobereviewedtothehigherof:
i. Thepreviouspassingrentmultipliedby1.1314(2.5%pacompounded)and
ii. TheOpenMarketRentalValueassuming“thebuildingsonthepremisescomprise inaggregateagrossinternalareaof20,000sqftwhichbuildingsarereadyandfit forpossessioninshellandcorecondition(butincludingheatingandlighting)meaning structurallycompletefullyglazedandwatertightinaccordancewithbuildingregulations withallexternalfasciasinplaceandfloorspowerfloated(butwithoutanyfinishes onanyfloorsorwalls)withservicesandIT/dataductingbroughtinand(saveforheating andlighting)cappedandallexternaltarmacinglandscapinganddrainageatthepremises havingbeencompleted”.
COVENANTHondaisrecognisedasoneoftheleadingvehiclemanufacturersthroughouttheworld.Theprincipalactivitiesofthetenantcompany,HondaMotorEuropeLtd,arethemanufactureandsaleofHondaproductsthroughouttheEurope,MiddleEastandAfricaregions.TheultimateholdingcompanyisHondaMotorCompanyLtd,incorporatedinJapan.
Fortheyearending31March2013thecompanyreportedtotalsalesof£4.28billion,apretaxlossof£31.39millionandnetassetsof£140million.
Dun&BradstreetgivethecompanyaRatingof 4A1representingaminimumriskofbusinessfailure.
RENTAL VALUEThepassingrentof£285,000pareflects£14.25psfoverallassumingthenotionalbuildingof20,000sqfttobeadoptedatrentreview.
TheminimumupliftdueatrentreviewinApril2016is£322,449pa,whichonthebasisofthenotionalbuildingtobeassumedatreviewreflects£16.12psf.Thislevelofrentisappropriateforsuchamodernfacilityoccupyingastrategiclocationinoneofthecountry’smajorregionalcentres.
TherehasbeenalackofrecentopenmarketevidenceinthemajorconurbationsbutalettinglastyearinBristolsuggeststhereisthepotentialfortheminimumuplifttobeexceeded.Fordpre-letanewfacilityatNorthfieldBusinessPark,closetoCribbsCauseway,at£300,000pawhichreflected£17.18psfonthedealershipelement.Nissanhavesubsequentlyagreedapre-lettingonthesameParkinBristolatarentalsounderstoodtobeinexcessof£17psf.
VATThepropertyiselectedforVATwhichwillthereforebepayableonthepurchaseprice.ItisintendedthatthesalewillbetreatedasaTOGC.
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
DISCLAIMER
HoddellStotesburyMorganLtdforthemselvesandforthevendorsofthispropertywhoseagentstheyaregivenoticethat:-
(i) theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersanddonot constitute,norconstitutepartof,anofferorcontract;
(ii) alldescriptions,dimensions,referencestoconditionsandnecessarypermissionsforuseand occupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrectbutanyintending purchasershouldnotrelyuponthemasstatementsorrepresentationsoffactbutshouldsatisfy themselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;
(iii)nopersonintheemploymentofHoddellStotesburyMorganLtdhasanyauthoritytomakeorgiveany representationorwarrantywhateverinrelationtothisproperty.
(iv)unlessotherwisestatedallrentsorpricesquotedareexclusiveofVATwhichmaybepayable inaddition.
(v) HoddellStotesburyMorganLtdhasnotmadeanyinvestigationsorotherwiseofanyissuesconcerning pollutionandpotentialland,building,airorwatercontamination.Prospectivepurchasersmust undertaketheirownenquiriesandsatisfythemselvesinthisregard.
(vi)HoddellStotesburyMorganLtdhasnotmadeanyinvestigationsorotherwiseofanyissuesconcerning pollutionandpotentialland,building,airorwatercontamination.Prospectivepurchasersmust undertaketheirownenquiriesandsatisfythemselvesinthisregard.
SEPTEMBER 2014
EPCThemaindealershipbuildinghasaRatingofA22andtheselfcontainedworkshopaRatingofD93.
PRICEWeareinstructedtoseekoffersinexcessof£5,080,000,subjecttocontractandexclusiveofVAT,whichreflectsanet initial yield of 5.3% rising to a guaranteed minimum of 6%onreviewinApril2016.Thesubsequentrentreviewsin2021and2026willensureguaranteedminimumyieldsof6.79%and7.68%respectively.
FURTHER INFORMATIONForfurtherinformationortomakearrangementsforaviewing,pleasecontact:
Richard Harding Andrew [email protected] [email protected]:02073181930 DDI:02073181934SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
HONDA SHOWROOM FREEHOLD CAR DEALERSHIP INVESTMENT
WWW.HSMUK.COM 115 MOUNT STREET, LONDON W1K 3NQ TELEPHONE: 020 7629 2030