cheltenham volkswagen - rapleys · 2019. 7. 24. · cheltenham volkswagen i tewkesury road i...
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CHELTENHAM VOLKSWAGENTEWKESBURY ROAD I CHELTENHAM I GL51 9AH
PRIME DEALERSHIP INVESTMENT
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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Investment SummaryInvestment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
1• Cheltenham is an affluent regency spa town
in Gloucestershire
• Large catchment population and a key territory for the manufacturers
• The property comprises a modern purpose built dealership facility comprising 17,548 sq ft (1,630 sq m)
• Prominent site in a strategic position adjacent to a Tesco Superstore and opposite a Wickes DIY unit
• Established dealership location with other brands operating in the area including Bentley, Porsche, Audi, Toyota, Ford, Vauxhall, Lexus and Aston Martin
• Let to the strong covenant of Inchcape Estates Limited (D&B 5A1) until December 2024 providing an unexpired term in excess of 6 years
• The lease was assigned by VW Group UK Ltd in August 2016 who have total net assets in excess of £717,000,000, providing further security of income
• Current passing rent of £254,567 per annum, reflecting a sustainable £14.51 per sq ft
• 5 yearly rent reviews to Open Market Value
• Strong alternative use residual values, subject to planning
• Freehold
We are instructed to seek offers in excess of £3,885,000 (Three Million, Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.15%, assuming purchaser’s costs of 6.53%.
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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Location
Cheltenham is an affluent regency spa town located in Gloucestershire, approximately 110 miles (177km) west of London, 48 miles (77km) north west of Oxford, 9 miles (15 km) east of Gloucester and 42 miles (68 km) north east of Bristol.
The town benefits from strong road communications being situated 3 miles (5 km) from Junction 11 of the M5 Motorway, which is accessed via the A40. The A40 runs through the town and provides convenient links to Gloucester to the west and Oxford to the east.
Cheltenham mainline railway station provides frequent services to London Paddington with a fastest journey time of 1 hour 50 minutes. There are further direct links to Swindon (1 hour), Bristol (45 minutes) and Birmingham (40 minutes).
Birmingham and Bristol airports are both situated approximately one hour’s drive time from Cheltenham.
Catchment and Demographics
The total population within Cheltenham’s primary catchment area is 392,000 people and draws from a wide geographical area ensuring that Cheltenham forms a key territory for both manufacturers and the dealer network groups alike.
The demographic profile of the local area is affluent, with an above average proportion of people characterised in the most affluent AB Social Groups and per capita spending levels above the UK average.
The level of car ownership in Cheltenham is significantly above average at 83% compared with a UK average of 74%, with a particularly high proportion of two car households.
The town also hosts the prestigious Cheltenham Racing Festival in March when the Cheltenham Gold Cup is held attracting in excess of 150,000 visitors each year.
2Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
A30
A39
A39
A38
A38A30
A30A30
A35
A24
A22A21
A28
A12
A10
A49
A55A55 A49
A59
A59
A64A65
A65A19
A19
A66
A68 A19
A68
A69
A68
A68
A66
A75
A75
A76
A71
A78
A71
A92
A90A85
A85
A82
A82
A830
A835
A82
A96
A99
A96
A96
A98
A95
A87
A86
A87
A78A78
A82A82
A830A830
A835A835
A87A87
A87A87
A84
A90
A90
A90
A952
A90
A92
A92
A91
A75
A77
A64
A64
A41
A41
A38A42
A47 A47
A15
A15
A17
A52A46
A46
A16
A16
A16
A47
A40
A40A40A40N22
N72N72
N76
N78
N30
N81
N80
N80
N62
N65
N63
N61
N17
N17
N15
N15
A32
A29
A29
A28
A24
A26
A36
A505
N56
N16
N60
N5
N4
N3
A4
A7
A1
A2
A5
A6
N2
N2
N4
N4
N55
N55
N52
N54
N84
N59
N18 N11
N20
N21
N25
N24
N24
A12
A11
A11
A10
A12
A12
A27
A3
A2
A1
A1
A1
A1
A7
A1
A1
A9
A9
A9
A9
A9
A9
A9
A6
A6
A6
A5
A5
A5
A37
A37A39
A39
A394
A390
A395
A388
A386
A380
A303
A303
A303
A272A259
A229
A131
A140
A146
A148
A1065
A1065
A140
A140
A354
A354A350
A429
A606
A158
A458
A494
A487
A487
A487
A470
A483
A477
A458
A515
A515
A614
A166
A595
A595
A696
A702A725
A737
A1068
A596
A171
A165A1079
A565
A417
A338A386
A377
A361
M27
M25
A1(M)
A1(M)
M180
A1(M)
A1(M)
A74(M)
M11
M11
M25
M23
M25
M40
M40
M50
M69
M54
M62
M58
M74
M77
M90
M53 M56
M62
M42
M25
M26
M20
M5
M5
M5
M6
M6
M6
M1
M1
M3
M4
M7
M9
M8
M50M4
M2
M8
M9
M6
M6
M3
M2
M1
M1
M1
M1
M4M4
Scarborough
HartlepoolDurham
Gateshead
Alnwick
Berwick-upon-Tweed
Galashiels
Dumfries
Stranraer
AYRPrestwick
Kilmarnock
Paisley
Falkirk
StirlingDunfermline
St Andrews
Perth
Inverness
Fort William
Portree
Stornoway
Middlesbrough
Darlington
BlackburnPreston
Warrington
Bolton
Macclesfield
Buxton
WIGAN
Chester
Stockport
Shrewsbury
WorcesterWorcester
HerefordHereford
CHELTENHAM
GloucesterGloucester
Bath
Swindon
Chelmsford
Dover
Canterbury
Maidstone
Tunbridge Wells
Guildford
HOVE
Basingstoke
ReadingReading
Winchester
Chichester
Salisbury
BournemouthNewport
Taunton
Truro
St Austell
Folkestone
Ipswich
Colchester
Kings Lynn
Lincoln
Grimsby
RotherhamBarnsley
HuddersfieldScunthorpe
Doncaster
Beverley
ThetfordHuntingdon
Stamford
BanburyBanbury
BuckinghamBuckingham
MiltonKeynesMiltonKeynes
BedfordBedford
SolihullSolihull
WarwickWarwick
Wexford
Newry
Lisburn
Armagh
Sligo
Antrim
SHEFFIELD
NOTTINGHAM
DERBY
STOKE-ON-TRENT
CoventryCoventry
WolverhamptonWolverhampton
NorthamptonNorthampton
OxfordOxford
BRIGHTONPORTSMOUTH
SOUTHAMPTON
EXETER
NewportNewportSWANSEA
PLYMOUTH
LeicesterLeicester
WAKEFIELD
LEEDS HULL
YORKLANCASTER
CARLISLESUNDERLAND
NEWCASTLE UPON TYNE
BRADFORD
Peterborough
CAMBRIDGE
NORWICH
DUNDEE
ABERDEEN
LONDONDERRY
GALWAY
LIMERICK
CORK
WATERFORD
DUBLIN
EDINBURGHGLASGOW
BELFAST
LIVERPOOL
MANCHESTER
BirminghamBirmingham
BristolBristolCardiffCardiff LONDON
ENGLAND
SCOTLAND
REPUBLIC OFIRELAND
NORTHERN IRELAND
ISLE OFMAN
ORKNEYISLANDS
SKYE
MULL
ISLAY
JURA
ARRAN
JERSEY
GUERNSEY
ISLES OFSCILLY
WESTERN ISLES
NA H-EILEANANSIAR
SHETLANDISLANDS
CATCHMENT AREACAR OWNERSHIP ABOVE UK AVERAGE
83%392,000 PEOPLE
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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Situation
The property is prominently located on the A4019, Tewkesbury Road, approximately 1 mile (1.6 km) from the centre of Cheltenham within an established out of town retail and dealership location, adjacent to a Tesco Foodstore and opposite a Wickes DIY unit.
The A4019 serves as a major arterial route through the town and provides a direct link to the M5 situated approximately 2.5 miles (4 km) to the north west. The A4019 also provides convenient links to the A40 and A4013.
Tewkesbury Road serves as the main out of town retail location and dealership cluster for Cheltenham. Gallagher, Kingsditch and Gateway Retail Parks are all in close proximity to the subject property and ensure significant footfall to the location.
In terms of other dealership provision Bentley, Porsche, Audi, Toyota, Ford, Vauxhall, Lexus, Aston Martin and Harley Davison all have representation in the vicinity.
3Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
11
10
M5
A40A40
A40
A4019
A4013
TEWKESBURY RD
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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Description
The property comprises a purpose built, recently refurbished dealership facility incorporating showroom, offices, workshop, parts and ancillary accommodation located at ground and first floor level providing a total GIA of approximately 17,548 sq ft (1,630 sq m).
The property is principally of steel portal frame construction incorporating glazed and clad elevations below a part pitched, part flat steel roof structure.
Internally, the property is fitted to a high specification throughout, including a ceramic tiled floor to the showroom which provides display spaces and extensive lighting. Adjacent to the showroom is a customer waiting area, offices and WC’s.
The workshop and parts department are situated to the rear of the showroom with further office accommodation, staff facilities and storage space situated at first floor level.
Externally, the property benefits from extensive road frontage with a mix of customer, display and storage spaces. There is further a secure compound area to the rear of the property.
Accommodation
VW CHELTENHAM
Sq M Sq Ft
GROUND
Showroom 410 4,418
Showroom Offices 43 465
Workshop 427 4,593
Parts 70 758
Ancillary 119 1,283
Handover 47 505
GROUND TOTAL 1,117 12,021
FIRST
First Floor Offices 272 2,926
Ancillary 99 1,061
Parts 143 1,540
FIRST TOTAL 513 5,527
TOTAL 1,630 17,548
CAR PARKING NO. OF SPACES
Display 80
Customer/ Service 32
Storage 50
4Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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Site Area Tenant Covenant Information
Tenancy
Tenure
The site area comprises approximately 1.54 acres (0.62 hectares).
Inchcape is one of the UK’s leading franchised retailer groups partnering with many of the world’s best known brands including VW, Audi, BMW, Jaguar, Land Rover and Mercedes-Benz.
The Inchcape group was floated on the stock exchange in 1958 and became a PLC in 1978. The company has seen significant growth and now operates in 32 national markets globally with an annual revenue of £8.9bn.
Inchcape Estates Limited (company number 293551) has a Dun and Bradstreet rating of 5A1.
December 2017
December 2016
December 2015
Sales Turnover £29,065,000 £27,681,000 £24,485,000
Pre-Tax Profit (Loss) £7,507,000 £4,835,000 £6,668,000
Tangible Net Worth £53,541,000 £51,233,000 £53,024,000
Volkswagen Group United Kingdom Limited forms part of the Volkswagen Group and is one of the country’s largest importers of vehicles, manufacturing one in every five cars sold in the UK.
Volkswagen Group United Kingdom Limited (company number 514809) has a Dun and Bradstreet rating of 5A1.
December 2017
December 2016
December 2015
Sales Turnover £10,412,700,000 £9,792,900,000 £9,430,300,000
Pre-Tax Profit (Loss) £156,000,000 £125,500,000 £158,600,000
Tangible Net Worth £717,400,000 £701,600,000 £709,400,000
The property is let via assignment to Inchcape Estates Limited on a full repairing and insuring lease for a term of 20 years from 21 December 2004 at a rent of £254,567 per annum, equating to £14.51 per sq ft.
The rent is subject to review on every fifth anniversary of lease commencement to Open Market Value, with the next review on 21 December 2019.
Inchcape Estates Limited took an assignment of the occupational lease from Volkswagen Group United Kingdom Limited in August 2016.
The property is held Freehold.
5Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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UK Automotive Industry Investment Comparables
Investor demand remains particularly strong for prime dealership assets in affluent geographical locations, let to substantial manufacturers and dealer network groups, off sustainable rental levels. The occupiers remain active and the sector is one of only a few where tenants continue to commit to long occupational leases, with fixed or indexed linked rent reviews.
Strong investor demand together with a lack of prime stock available in the market has seen yields continue to harden in the last few months with examples of sub 4% having been achieved in the sector. With both institutional and private investor demand for dealership assets showing no signs of wavering, we anticipate pricing will remain robust for modern, well located assets situated in key territories for the manufacturers.
Date Address Floor Area Unexpired term
Price NIY
OTM VW Camberley 8,096 sq ft 6.75 £5,150,000 5.25%
Feb-18 Volvo Milton Keynes 11,668 sq ft 8.5 £3,100,000 5.45%
Feb-18 VW Harrogate 30,797 sq ft 10 £5,750,000 5.55%
May-18 Audi Cardiff 33,647 sq ft 7.5 £8,000,000 6.05%
Dec-17 Audi Huddersfield 29,354 sq ft 7.5 £6,300,000 5.89%
Aug-17 BMW High Wycombe 60,212 sq ft 9.5 £26,100,000 5.01%
6Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information
CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH
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7VAT Further InformationEPC Proposal
It is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).
For further information or to arrange an inspection, please contact:
Rick McIntosh-Whyte 020 7255 8064 [email protected]
Rebecca James020 7255 8040 [email protected]
Martin Carey020 7255 8085 [email protected]
Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey – © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright. All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. October 2018
A copy of the Energy Performance Certificate is available upon request.
We are instructed to seek offers in excess of £3,885,000 (Three Million, Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.15%, assuming purchaser’s costs of 6.53%
Investment Summary
Location
Catchment and Demographics
Situation
Description
Accommodation
Site Area
Tenure
Tenancy
Tenant Covenant Information
UK Automotive Industry
Investment Comparibles
VAT
EPC
Proposal
Further Information