vw battersea€¦ · industry is quickly getting back into gear. new car registrations and the used...

VW BATTERSEA

98 YORK ROAD, LONDON SW11

FLAGSHIP CAR DEALERSHIP INVESTMENT WITH RPI LINKED UPLIFTS

VW BATTERSEA

92 YORK ROAD, LONDON SW11 3RD



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INVESTMENT SUMMARY

• State of the art, recently developed flagship car dealership

• VW have been trading from this location for over 60 years and comprises a key territory for the brand

• Exceptionally well located in Battersea, a densely populated and affluent London borough

• Prominently located fronting York Road

• Dealership of approximately 95,000 sq ft arranged over ground, first and second floors and 173 flats above developed by Linden Homes (part of Galliford Try plc), sold off on a long lease

• The property will be let to Bolling Investments Ltd for a term of 20 years with 5 yearly rent reviews linked to RPI with a collar and cap of 1% and 3% pa

• Bolling Investments Ltd, part of Lookers plc is the second largest dealership group by turnover in the UK

• The initial passing rent will be £1,250,000 pa which equates to a low rent psf of c.£13.15

• Freehold

VW BATTERSEA • 92 YORK ROAD • BATTERSEA • LONDON SW11 3RD

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LOCATION

BATTERSEA IS LOCATED 3 MILES TO THE SOUTH WEST OF CENTRAL LONDONBattersea is located in Zone Two to the south west of Central London within the Borough of Wandsworth, approximately 3 miles (4.8 km) south west of Charing Cross.

Heathrow Airport is approximately 13 miles (21 km) west of the Borough and Gatwick Airport 30 miles (48 km) to the south. Clapham Junction mainline railway station is in close proximity to the south east with services to London Waterloo, London Victoria and the south of England. Battersea Park is a 15 minute walk to the east and there are future plans for an extension to the Northern Line from Battersea which will further improve the accessibility of the wider area.


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River T

ham

es

WANDSWORTH TOWN

CLAPHAMJUNCTION

IMPERIALWHARF

FALCONPARK

BATTERSEA

A3205

YORK RDFALCON ROAD

VICARAGE CRES

WANDSWORTH BRIDGE RD

A3036

A3205

A3217

A214A3

A3220

HEATHROW AIRPORT CLAPHAM JUNCTION

BATTERSEA NEW DEVELOPMENT CGI

SITUATION

The property occupies a prominent

corner position on the north side of

York Road, just east of the junction

with Bridges Court in Battersea. Nine

Elms Opportunity Area and Battersea

Power Station lie to the east, Clapham

Junction mainline station to the south

and the River Thames a short distance

to the north east.

Bridges Court provides a mixture of

commercial uses including industrial,

offices and the London Heliport,

together with residential. Nearby

commercial occupiers include Land

Rover, Crowne Plaza, Halfords, Pets at

Homes, Jewson, Barker & Stonehouse

and Big Yellow Self Storage.

Battersea, including the immediate surrounding area, is undergoing significant change and has more recently been known as the best example of regeneration in London.

The property benefits from a wide catchment and very affluent population covering Battersea, Wandsworth, Fulham, Chelsea, South Kensington, Vauxhall, Putney, Brixton, Balham, and Dulwich.

The closest significant VW dealership is located at Brentford, 7 miles (11.2 km) to the north west.

A VW dealership has occupied this site for 60 years and represents a significant territory for the brand.

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CHELSEA VICTORIA

RIVER THAMES

THE SHARDBATTERSEAPARK

CLAPHAMJUNCTION

CLAPHAMCANARY WHARFBATTERSEAPOWER

STATION &NINE ELMS

VAUXHALL

CITY OF LONDON

A3205

A3205

YORK RD


TENANCY

The property will be let in its entirety to Bolling Investments Ltd for a term of 20 years at a commencing rent of £1,250,000 pa. The rent will be reviewed 5 yearly and linked to the Retail Price Index with a collar and cap of 1% and 3% pa.

TENURE

Freehold.

The residential uppers and 2 levels of basement parking have been sold off to Linden Homes (Linden (York Road) LLP) for 999 years from 4 April 2016 at a peppercorn rent.

ACCOMMODATION

We have been advised that the total Gross Internal Area is approximately 95,000 sq ft.

DESCRIPTION

The scheme occupies 100% site coverage and is arranged vertically with the flagship VW car dealership forming a three storey podium upon which the residential units are arranged in four blocks, ranging from 6 to 13 storeys, around a landscaped communal garden area. The dealership also includes multiple charging points for EV use.

Occupying the ground, first and second floors, the c.95,000 sq ft purpose built dealership can display 17 new cars from across the VW range, as well as over 50 used cars. It includes a state of the art customer handover bays, 16 service and repair bays, two dedicated MOT bays and luxurious customer facilities.

JEWSONS

LONDONHELIPORT

CROWNEPLAZA

HALFORDS

PETS ATHOME

BIG YELLOWSELF

STORAGE

BARKER &STONEHOUSE


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A3205

YORK RD

VICARAGE CRES

Riv

er T

ham

es

JEWSONS

LONDONHELIPORT

CROWNEPLAZA

HALFORDS

PETS ATHOME

BIG YELLOWSELF

STORAGE

BARKER &STONEHOUSE

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DEALERSHIP INVESTMENT MARKET

The UK and European dealership investment market remains strong for prime assets. Institutional and private investors demonstrated a strong appetite to invest in the sector, attracted by the secure income profiles with long leases let to manufacturers or dealer network groups, together with the prevalence of guaranteed rental uplifts in many leases. Location is a key fundamental for the sector.

Car sales in the UK saw a large decline in April and May 2020 following the Covid-19 lockdown, but dealerships were able to reopen on the 1st June 2020 and the industry is quickly getting back into gear. New car registrations and the used car market are fast returning to pre Covid-19 levels.

The dealership investment sector has seen a number of impressive deals completing in Q1 2020 and, with a recent lack of supply in Q2, demand has remained strong for the sector resulting in pricing remaining resilient. Most notably, Volvo Crawley has achieved a sub 5% NIY in an off market transaction in June 2020.


TENANT’S FINANCIAL STATUS


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BOLLING INVESTMENTS LTD

Bolling Investments Limited have a D&B rating of 5A2 and are a 100% wholly owned subsidiary of Lookers plc, holding the majority of the company’s property assets.

Lookers plc, established in 1908, is one of the leading motor retail and aftersales service groups in the UK and Republic of Ireland, representing 31 manufacturer brands in over 160 dealerships.

Lookers, the second largest dealership group by turnover, has the largest geographical spread of dealerships and choice of brands than any other automotive company in the UK, comprising of three core divisions; Automotive, Agricultural and Leasing.

The latest financial results for Bolling Investments Limited are set out below:

Year End 31/12/2018 31/12/2017 31/12/2016

Turnover (£000’s) 7,774 7,575 5,640

Profit / (Loss) Before Tax (£000’s) 13,434 7,089 6,463

Tangible Net Worth (£000’s) 57,019 45,782 40,183

VOLKSWAGEN AG

Known internationally as the Volkswagen Group, Volkswagen AG designs, manufactures and distributes passenger and commercial vehicles, motorcycles, engines and turbomachinery and offers related services including financing, leasing and fleet management.

It ranked ninth in the 2019 Fortune Global 500 list of the world’s largest companies. Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat, Skoda and Volkswagen marques; motorcycles under the Ducati brand and commercial vehicles under the marques MAN, Scania and VW.

VW delivered c 6.3m new vehicles worldwide in 2019 with a 60% increase in electric vehicles. Their market share increased in all major markets globally.

The company has operations in approximately 150 countries and operates 100 production facilities across Europe.

VW is currently the top selling marque in the UK selling 45,095 units in Q1 2020. It is the only marque with 2 top selling models (Golf and Polo) in the top 10. It is anticipated that sales will continue to improve with the launch of the new Golf 8.

Battersea represents a significant territory for the brand which has culminated in the redevelopment of the former dealership into the new flagship for the marque.

LINDEN HOMES

The residential upper floors have been let to Linden (York Road) LLP for a term of 999 years from 4 April 2016 at a peppercorn rent.

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VW IS CURRENTLY THE TOP SELLING MARQUE

IN THE UK SELLING 45,095 UNITS IN Q1 2020


PURCHASE PRICE

Offers Invited.

VAT

The property is elected for VAT, however it is anticipated that the transaction will be treated as a Transfer of a Going Concern (‘TOGC’).

CAPITAL ALLOWANCES

The vendor will retain all Capital Allowances.

ANTI MONEY LAUNDERING

In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, the Purchaser will be required to comply with our Anti-Money Laundering policy. Further details on request.

EPC

An Energy Performance Certificate will be available upon request.

DATA ROOM

Full access to a data room will be provided upon request.

FURTHER INFORMATION

Should you require any further information on the property or wish to arrange an inspection, please do not hesitate to contact:

Martin Carey020 7255 [email protected]

Jonny Doulton020 7255 [email protected]

Rebecca Harper020 7255 [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. July 2020. carve-design.co.uk 14765/7. CGIs provided by Taylor Design.


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vw battersea€¦ · industry is quickly getting back into gear. new car registrations and the used...

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