Prime Car Showroom and Motor Trade Investment Units 1a, b & c, … · 2010-04-09 · Prime Car...

Prime Car Showroom and Motor Trade InvestmentUnits 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex

Exceptional location fronting major roundabout at theintersection of Gatwick Road and Fleming Way, Crawley

5,078.2 sq.m. (54,622 sq ft) on a site of approximately 3 acres.

60% of income to Volkswagen Group United KingdomLimited (D&B rating of 5A1) for further 18 years withminimum fixed uplift in March 2013.

10% of income to Euro Car Parts Limited (D&B rating of4A1) for a minimum of 9.75 years with minimum fixed upliftin January 2015.

1,258.0 sq m (13,541 sq ft) available to let and subject to 2 years rent, rates and service charge guarantee.

Total income receivable of £585,350 pa rising to aminimum of £631,343 pa by March 2013 and £640,955 paby January 2015.

Price of £8,500,000 (eight million five hundred thousandpounds) for the freehold interest subject to contract andexclusive of VAT reflecting a net initial yield of 6.51% risingto 7.02% by March 2013, 7.13% in January 2015 and netequivalent and true net equivalent yields of 7.05% and7.36% respectively after purchaser’s costs of 5.75%.

Investment Summary

“Exceptional location fronting majorroundabout at the intersection of Gatwick Road and Fleming Way, Crawley”

Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex

Crawley is an important sub regional centre situatedin the heart of the Gatwick Diamond, one of the mostdynamic regions in the country.

With a population of 648,000 and a workforce of343,000 the Gatwick Diamond has a GDP of over £13billion, approximately 8 per cent of the South Eastregional output. It is the 11th most significantEuropean Airport region with Gatwick being the UK’ssecond largest airport and the eighth largest inEurope. It is anticipated that a 5 year £1 billioncapital improvement for Gatwick Airport will becompleted by 2013.

Crawley is strategically located within the Diamondbeing a few miles south of Gatwick Airport, 32 milessouth of Central London, 20 miles north of Brightonand adjacent to the M23 (junctions 9, 9A, 10A and11) and 9 miles south of junction 7 of the M25.

It has a district population of approximately 100,000(2001 Census), which is expected to rise to 110,000within the next few years, and a catchmentpopulation of 450,000.

Major occupiers include Virgin Atlantic Airways,BAA, Civil Aviation Authority, First Choice Holidays,Thales, Unilever, Deloitte and KPMG.

Communications are excellent being home toGatwick Airport, adjacent to the M23 and benefittingfrom 3 mainline train stations, including Crawley(town centre), Three Bridges and Gatwick Airportproviding direct services to London Bridge andLondon Victoria in 30 minutes.

Location

The Gatwick Diamond


SituationThe property occupies an extremely prominent positionfronting a major roundabout at the junction of Gatwick Roadand Fleming Way in the heart of the Manor Royal BusinessDistrict

The Manor Royal Business District is one the of the largestbusiness parks in the South East. It covers an area of 240hectares and is home to approximately 500 businesses and 30,000 jobs.

It is the focus of the retail motor trade in the town withMercedes, Citroen, Vauxhall, Kia, Mitsubishi, Hyundai, Toyota,Jaguar, Land Rover and Ford all having representation.

The location of the subject property will be further enhancedas the premier motor trade location by the development ofphase 2 of The Drive on expiry of the lease on the adjoiningEezehaul Unit in 2014.

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Unit 1The Drive


MANOR ROYAL

DescriptionThe property was stripped back to the frame and rebuilt in 2008 to provide a high quality motortrade facility divided into 3 units and comprising 5,078.2 sq.m. (54,622sq.ft.) on a site ofapproximately 3 acres.

Unit 1a was fully fitted by the landlord to provide a bespoke two storey car dealership facility for Volkswagen comprising 3,259.5 sq.m. (35,086 sq.ft.) which includes an internal parking deckof 777.2 sq.m. (8,366 sq.ft.) providing 36 car spaces. The unit also benefits from 148 external car spaces. Excluding the internal parking deck area the unit comprises 2,482.3 sq.m. (26,720 sq.ft.) with 184 car spaces – a ratio of 1:145.

Units1b and 1c were constructed to a shell and core finish and designed to allow maximumflexibility. Each has a glazed frontage and return frontage, an eaves height of 7.24 metres (23 ft 9ins)and could accommodate either a dual or two single franchises in the future.

Unit 1c is currently being used as a B8 and trade counter facility by Euro Car Parts.


Accommodation


Unit 1a sq.m (GIA) sq,ft. (GIA)

Ground Floor Showroom 572.9 6,067

Workshop 994.0 10,699

Workshop Control 48.0 517

Sales Office 48.6 523

Parts 104.5 1,125

Ancillary 53.1 572

First Floor Showroom 360.1 3,876

Office 76.3 821

Parts Mezzanine 72.3 778

Ancillary 152.5 1,642

Car Deck 777.2 8,366

3,259.5 35,086

Total excluding car deck 2,482.3 26,720

External Display Parking 70 spaces

Customer/Service Parking 78 spaces

Internal Car Deck 36 spaces

Unit 1b

Ground Floor Showroom 1,258.0 13,541

Parking 110 spaces

Unit 1c

Ground Floor Warehouse 560.7 6,035

Parking 13 spaces

Total Area including car deck 5078.2 54,662

Total Area excluding car deck 4301.0 46,296

TenanciesThe property is let in accordance with the tenancy schedule below.

TenureFreehold


All leases are drawn on full repairing and insuring terms* Excludes internal parking deck

Unit Tenant Floor Area sq.m (sq.ft) Lease Term Rent PA Rent PSF Rent Reviews Comments

1a Volkswagen Group *2,482.3 20 years from £350,000 £13.10 5 yearly The first review is to the higher of open market valueUnited Kingdom Limited *(26,720) 28th March 2008 assuming a fully fitted unit or £395,993pa (£14.82psf).

Subsequent reviews are to open market value. VW operate the unit through Motorline (Kent) Ltd, one of their authorised dealers, by way of a subletting on similar terms but outside the protection of the Landlord and Tenant Act 1954.

1b Vacant 1,258.0 £175,000 £12.92 Vendor will provide a rent, rates and service charge(13,541) guarantee for 2 years from completion.

1c Euro Car Parts Limited 560.7 15 years from £60,350 £10.00 5 yearly The first review is subject to a fixed increase to £69,962pa(6,035) 7th January 2010 (£11.59psf). The subsequent review is to the higher of open

market value or a fixed increase based on 2% per annumcompound growth. The tenant has an option to break in the 10th year subject to 12 months notice.

£585,350

UNITS 1a, 1b, 1c

Phase 2 to bedeveloped 2014

1a

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VW


TO BE LET


EURO CAR PARTS


Covenant InformationVolkswagen is Europe’s largest car manufacturer and Volkswagen Group UnitedKingdom Limited is regarded as the best covenant in the UK automotive androadside sector with a Dun & Bradstreet rating of 5A1. For the financial yearending 31st December 2008 it had a profit of £65.5m and a net worth of £767.5m.

Euro Car Parts is the UK’s largest distributor of parts and garage equipment forcars and light commercial vehicles to UK garages. It has over 70 branches andemploys more than 2,000 people in over 45 different towns and cities across theUK. For the financial year ending 31st December 2008 Euro Car Parts Limitedhad a profit of £6.63m and a net worth of £20.46m and a Dun & Bradstreet rating of 4A1.

PlanningPlanning permission was granted for the redevelopment of unit 1 to “accommodate2 car dealerships including servicing, workshop, maintenance and preparationareas” on 3rd April 2007.

Subsequent permission was granted on 3rd November 2009 for the subdivision ofUnit 1b (now 1b and 1c) and change of use for Unit 1c to Class B8 (storage anddistribution) with ancillary trade counter and erection of mezzanine. The tradecounter use is restricted to 6% of the ground floor and 3% of the whole building.

It is the intention of the vendor to develop the adjoining site for a further 6,968 sq.m.(75,000 sq.ft) of motor trade accommodation on expiry of the existing Eezehaul leasein 2014. This site has an existing planning permission for motor trade use.



Capital AllowancesThere will be no capital allowancesavailable to the purchaser.

VATThe Property is elected for VAT

ProposalWe are instructed to seek a price of£8,500,000 (eight million five hundredthousand pounds) for the freeholdinterest subject to contract andexclusive of VAT. A purchase at thislevel reflects a net initial yield of6.51% rising to 7.02% in March 2013,7.13% in January 2015 and netequivalent and true net equivalentyields of 7.05% and 7.36%respectively after purchaser’s costs of5.75% This represents a capital value for the vacant unit ofapproximately £130 psf and 22% ofthe purchase price.

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Further informationFor further information or to arrange a viewing, contact:

Lawrence GlucksteinDirect Line: 020 7659 9742email: [email protected]

Neil EdwardsDirect Line: 020 7659 9741email: [email protected]

Prime Car Showroom and Motor Trade Investment Units 1a, b & c, … · 2010-04-09 · Prime Car...

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Transcript of Prime Car Showroom and Motor Trade Investment Units 1a, b & c, … · 2010-04-09 · Prime Car...