honda motor europe limited - hsm chartered surveyors...2011 on full repairing and insuring terms...

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

OT R

OAD

CHES

TER

ROAD

WA

RW

ICK

RO

AD

SIR

MA

TT

BU

SB

Y W

AY

BO

YE

R S

TR

EE

T

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


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.


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%.


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.


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


WWW.HSMUK.COM 115 MOUNT STREET, LONDON W1K 3NQ TELEPHONE: 020 7629 2030

honda motor europe limited - hsm chartered surveyors...2011 on full repairing and insuring terms...

Documents