& auto entre | 118 lakswarth road, ristol s5 8ag€¦ · servicing bays and two mot bays....

CAR SUPERMARKET, NETHAM ROAD, BRISTOL BS5 9PQ

& AUTO CENTRE | 118 BLACKSWARTH ROAD, BRISTOL BS5 8AG

CAR SUPERMARKET & AUTO CENTRE INVESTMENT OPPORTUNITY SECURE 20 YEAR UNCAPPED RPI INCOME

PROPOSAL

We are instructed to seek offers in excess of £4,000,000 (Four Million Pounds), subject to contract and exclusive of VAT. A purchase at this level will reflect a Net Initial Yield of 7.09% after allowing for normal purchasers costs of 5.8%.

INVESTMENT SUMMARY

» Established Car Supermarket and associated AutoCentre

» Prominent location fronting Netham Road

» 20 year lease to Brent Cars Limited t/a Carbase

» Major city and largest commercial centre in the southwest of England

» Carbase are a growing used car dealership group anda well established RAC Recommended Dealer,occupying four sites across the south west of England

» 86% of income benefits from uncapped RPI increasescompounded

» Low rent of £2.71 psf on Auto Centre with OMVreviews

» Total passing rent of £299,950 per annum

» Long term redevelopment opportunities (STP),underwriting the residual value of both sites

CARBASE | NETHAM ROAD, BRISTOL BS5 9PQ AUTO CENTRE | 118 BLACKSWARTH ROAD, BRISTOL BS5 8AG

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LOCATION

Bristol is the largest city in the south west of England with an estimated population of 442,500. Bristol is one of the eight largest regional cities in England.

Bristol is located approximately 118 miles (190 km) west of London, 88 miles (142 km) south of Birmingham, 83 miles (134 km) north of Exeter and 44 miles (71 km) east of Cardiff.

The city benefits from excellent road communication links served by the M4 Motorway which connects London in the east to Wales in the west, and the M5 Motorway which connects Exeter in the south to Birmingham in the north.

There are two main line railway stations, Bristol Temple Meads and Bristol Parkway, served by frequent direct trains to London Paddington with a fastest journey time of 1 hour 40 minutes. The city is also served by Bristol Airport which, in 2014, handled over 6.3 million passengers, serving both domestic and international destinations.

Bristol airport is currently undergoing significant improvement works with an £8.6 million eastward terminal extension having recently opened in July 2015 and a further £24 million westward terminal extension due to complete in summer 2016.


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SITUATION

The properties comprise two standalone sites, Carbase Used Car Dealership and its associated Auto Centre. They are located approximately two miles east of Bristol city centre fronting Netham Road/Blackswarth Road, which connects the A420 to the north and Feeder Road and Bath Road to the south.

Carbase Used Car Dealership is located on Netham Road, adjacent to Netham Park Industrial Estate to the north, Netham Park to the west and the River Avon to the east. The site is significantly elevated from the river and does not lie within a flood zone. The immediate surrounding areas comprise established commercial and industrial uses with residential to the wider area.

Carbase Auto Centre is located 350m to the north of the main dealership site fronting Blackswarth Road. The immediate surrounding areas comprise established commercial and trade counter uses to the west, residential to the north and Netham Park to the south west.


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DESCRIPTION

The two properties comprise a used car dealership facility with extensive frontage to Netham Road and its associated Auto Centre on Blackswarth Road, utilised for MOTs and servicing their stock vehicles.

The Used Car Dealership comprises a fully glazed, double height showroom area to the front providing a large sales area, including a customer waiting area, ancillary sales offices and staff accommodation. The showroom can accommodate approximately 20 display vehicles. The first floor mezzanine provides additional offices, meeting rooms and storage areas. The dealership has an excellent car parking provision with a display forecourt and customer parking for in excess of 500 vehicles.

The Auto Centre comprises seven vehicle servicing bays and two MOT bays. Formally three separate workshops, these have been opened out to provide one comprehensive suite. Staff facilities are located to the south of the main workshop and a reception area, office and waiting area are situated under a single storey lean to, accessed from the car park to the front of the site. To the rear of the site, accessed through the workshop, is an additional enclosed compound for approximately 20 vehicles and a telephone mast, let to a third party. There is customer parking to the front of the site.

Use Sq ft Sq m

Showroom 6,443 598.6

Offices 1,364 126.7

WC’s/ ancillaries/ etc 750 69.7

FF - Mezzanine offices 4,070 378.1

FF - Stores 606 56.3

FF - Further ancillaries 753 70.0

Total Accommodation 13,986 1,299.3

Use Sq ft Sq m

Reception/offices 628 58.3

Workshops 11,698 1,086.8

Ancillary (including WC) 250 23.3

Kitchen 320 29.7

Total Accommodation 12,896 1,198.1


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ACCOMMODATION

The properties provide the following approximate gross internal floor areas (GIA) in accordance with the RICS Code of Measuring Practice (6th edition):-

CARBASE DEALERSHIP NETHAM RD

The site extends to approximately 3.81 acres (1.54 ha) providing a very low site coverage of approximately 5%. There is an additional area held by way of a lease with a further 0.70 acres (0.28 ha) to the rear of the site with 3,159 sq ft (293.5 sq m) of valeting facilities.

AUTO CENTRE BLACKSWARTH ROAD

The site extends to approximately 0.61 acres (0.24 ha) providing a site coverage of approximately 49%.

Carbase

Netham Road

Auto Centre

Blackswarth Road

Telecoms Mast

Blackswarth Road

Tenant Brent Cars Ltd t/a Carbase Brent Cars Ltd t/a Carbase O2 Limited

Lease Start 02/09/2015 02/09/2015

Lease Expiry 01/09/2035 01/9/2035

Term 20 years 20 years Holding Over3

Rent £260,000 £35,000 £4,9504

Next Review 1/09/20201 2/9/20202 n/a


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TENURE

Carbase Dealership, Netham Road The property is held Freehold. NB: The valet compound area to the rear of the site is held leasehold by the tenant, Carbase, subject to a rent of £35,000pa until October 2020. This does not comprise part of the sale. Further information available on request.

Auto Centre, Blackswarth Road The property is held Freehold.

TENANCY

Both units are occupied on full repairing and insuring FRI lease terms subject to schedules of condition, available on request.

1 5 yearly upwards only rent reviews linked to uncapped RPI increases 2 Rent reviewed 5 yearly to open market rental value

NB: The vendor will place £65,000 into an escrow account in line with Section 7 of the lease of Blackswarth Road to cover any associated future Roof Works.

3 On-going negotiations with Cornerstone Telecommunications Infrastructure Ltd (CTIL) to regear. CTIL is a joint venture between Telefónica and Vodafone with a reported turnover of £302.65m, net assets of £1.22bn and a net worth of £865.66m as at 31 March 2014.

4 In addition, there is a top up rent of 35% of the income, derived via a pay away structure which last year took the total income to £8,314.31. We have not capitalised this extra £3,364 in our calculations.

All cars Avg Age

(months)

Avg Mileage

(miles) Avg Value Sale vs CAP

Oct 2014 60.07 55,895 £7,748 95.60%

Oct 2015 60.25 54,262 £7,992 96.63%


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UK AUTOMOTIVE INDUSTRY

The used car market has been performing strongly, according to the British Car Auctions (BCA), with values rising across the board during October. Both fleet and part-exchange values increased by 1.5% and nearly new vehicles rose by 6.1% in the year to October 2015. The headline average value improved by 3.7%, the highest so far this year.

In addition, 2015 new car registrations in the UK reached their highest ever September total with 462,517 new cars registered, making it the 43rd consecutive month of growth following the release of the new 65-plate. The total number of cars registered was at 2,096,886 in the year to October 2015, 7.1% higher than that of the previous year. This is the first time the two million mark has been passed since September 2004. All market sectors, private, fleet and business, have benefited from the increase and registrations of diesel, petrol and alternatively fuelled cars grew 4.1%, 12.3% and 21.7% respectively in September 2015.

VAT

The property is subject to an option to tax and VAT will be applicable to the sale. The transaction is expected to be treated as a Transfer of a Going Concern (TOGC).

EPCEnergy Performance Certificates are available on request.

COVENANT INFORMATION

Brent Cars Limited (company number 4794864), trading as Carbase, is one of only a few specially selected used car dealers in the country to have been awarded RAC Recommended Dealer status. Carbase

occupy four sites in the south west of England; Bristol, Weston-Super-Mare, Lympsham and Brent Knoll and the majority have associated Auto Centres on site.

The latest accounts demonstrate significant year on year improvements as sales rose to £33.5m in the 12 months to 31 December 2014, up from £26.4m in 2013. Pre-tax profits increased to £982,190 from £664,378 in the previous year. The rising trend is forecast to continue in 2015 and, as Carbase are now operating with record stock levels, this should enable an increase in turnover and wider profit margins as they benefit from additional economies of scale.

Brent Cars Limited have a Dunn & Bradstreet rating of 2A3. Provided below is a summary of the past three year’s financial performance:

O2 Limited (company number 4330445), O2 is the second largest telecommunications services provider in the UK and is headquartered in Slough. A merger is currently taking place between O2 and

Hutchinson Whampoa which will make the network the largest in the UK. O2 currently operate from 436 stores across the country and has over 21,580 employees. O2 Limited has a net worth of £112m in year ending December 2014. O2 is a wholly owned subsidiary of Telefonica SA.

Financial

Year End 31/12/2014 31/12/2013 31/12/2012

Y-o-Y %

Increase

Y-o-Y %

Increase

Turnover £33,504,229 £26,425,673 £22,416,187 17.88% 26.78%

Profit £982,190 £664,378 £222,367 198.77% 47.84%

Net Worth £3,546,449 £3,000,220 £2,745,860 9.26% 18.20%

DISCLAIMER

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. January 2016.

PROPOSAL We are instructed to seek offers in excess of

£4,000,000 (Four Million Pounds) , subject to contract

and exclusive of VAT. A purchase at this level will

reflect a Net Initial Yield of 7.09% after allowing for

normal purchasers costs of 5.8%.

FURTHER INFORMATION For further information or to arrange an inspection please

contact:-

Martin Carey Jonny Doulton

020 7255 8085 020 7255 8099

[email protected] [email protected]

Rebecca James

020 7255 8040

[email protected]

mailto:[email protected]

mailto:[email protected]

& auto entre | 118 lakswarth road, ristol s5 8ag€¦ · servicing bays and two mot bays....

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