FREEHOLD CAR DEALERSHIP INVESTMENT · 2016-03-10 · FREEHOLD CAR DEALERSHIP INVESTMENT Tesla Motors 396 Wellington ... Airport Manchester Airport Chester Skelmersdale St Helens A5117

Tesla Motors, 396 Wellington Road (A6), Stockport SK4 5AE

FREEHOLD CAR DEALERSHIP INVESTMENT

Tesla Motors 396 Wellington Road (A6)StockportSK4 5AE

Investment Summary Location Situation Description Accommodation Tenure Motor Retail Investment Market Further Information

http://gva.co.uk/8702

Executive SummaryExecutive Summary


Investment Summary• A purpose-built vehicle dealership that has been

recently redesigned and refurbished to a high specification.

• Located in Stockport, prominently situated on the A6 Wellington Road, the main link road between Manchester and Stockport.

• Buildings of 15,641 sq ft, on a site of 1.18 acres.

• Let to Tesla Motors Limited (guaranteed by Tesla Motors Netherlands BV) on a new 15 year FRI lease from 8 September 2015, with tenant break options after five and ten years.

• The rent is to be reviewed five yearly, upward only in accordance with RPI, collared and capped at 1%-3%.

• The initial rent is £140,000 per annum, reflecting only £8.95 per sq ft overall.

• We are instructed to seek offers in excess of £1,765,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 7.5%.



Investment Summary Situation Description Accommodation Tenure Motor Retail Investment Market Further Information

Tenure

Location


Location Stockport is located 7 miles south of Manchester city centre with, as at 2011, a resident district population of approximately 283,000. Given the property’s proximity to the wider Manchester conurbation, the population within five miles of the subject property is estimated to be around 796,000.

The town has excellent road communications being served by Junctions 1 and 27 of the M60 Manchester Orbital Motorway. Stockport railway station is on the West Coast mainline with regular services to London, Manchester and Birmingham.

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Tenure


SituationThe property is situated in a prominent location on the A6 Wellington Road, the main link road between Manchester and Stockport, just north of its junction with the A626. The A6 and A626 lead directly to Junctions 1 and 27 of the M60 respectively, two miles to the south.

There is a range of commercial occupiers located close by on the A6 including, to the north, Aldi, Morrisons, KFC, McDonald’s and Texaco and Shell branded forecourts, all within ½ mile of the subject site. Similarly, to the south, occupiers within a mile include Mercedes and Ford car dealerships, Topps Tiles, Boots Opticians, Safestore and an Esso branded filling station.



Investment Summary Location Situation Accommodation Tenure Motor Retail Investment Market Further InformationDescription


DescriptionThe property comprises a purpose-built car dealership facility with a showroom building to the front of the site, together with a larger self-contained workshop building to the rear. The tenant has invested heavily in the refurbishment and fitting out of the property.

Internally, the showroom provides display for three vehicles (it previously had capacity for seven display vehicles prior to refurbishment), and benefits from full height glazing to the front and sides. Ancillary offices are provided on both ground and first floors.

The rear building has been redesigned and refurbished to accommodate a workshop with seven vehicle service bays (it previously had nine), storage accommodation and a rear valet area.

Both buildings have undergone extensive fit out works by Tesla in accordance with its corporate branding.

To the front of the site there is generous vehicular display provision for approximately 32 vehicles. There is additional parking to the rear, including a secure parking compound, which in total can accommodate around a further 60 vehicles.




AccommodationThe property has the following approximate gross internal areas:

The property has an approximate site area of 1.18 acres (0.48 hectare), giving a footprint site cover of 27%.

Showroom Building: Sq Ft Sq M

Ground floor showroom/offices

3,875 sq ft 360 sq m

First floor offices/ancillary 1,841 sq ft 171 sq m

Subtotal 5,716 sq ft 531 sq m

Rear Workshop: 9,925 sq ft 922.0 sq m

Total GIA 15,641 sq ft 1,453.0 sq m




Tenure

Freehold.

Tenant Tesla Motors Limited (Company No: 4384008); guaranteed by Tesla Motors Netherlands BV.

LeaseThe property is let for a term of 15 years from 8 September 2015 at a commencing rent of £140,000 per annum. This rent reflects only £8.95 psf overall. The lease is on full repairing and insuring terms, subject to a Schedule of Condition.

The rent is reviewed five yearly in an upward only direction in accordance with the increase in the Retail Prices Index, subject to a cap of 3% per annum and a collar of 1% per annum compounded.

The tenant has break options after five and ten years, subject to six months’ written notice. In the event of the tenant breaking the lease after only five years, it shall pay a penalty to the landlord of £35,000.

The tenant’s obligations under the lease are guaranteed by Tesla Motors Netherlands BV.

The property is subject to a lease in favour of Electricity North West Limited in respect of a substation for a term of 99 years from 8 September 2015. A copy of the Lease is available upon request.

Covenant Tesla Motors Limited is the UK subsidiary of Tesla Motors, Inc., the world leader in the manufacture of electric vehicles. Tesla Motors, Inc., is quoted on the NASDAQ Stock Exchange and as at 31 December 2015 the company had a market capitalisation of $31.43bn.

Tesla Motors Limited was founded in 2003 in Silicon Valley, California. The first Tesla Roadster was launched in 2008 and, in 2012, the company produced the Model S, a luxury saloon car which was named Motor Trend’s Car of the Year and Best Overall Car by Consumer Reports. In 2014, Tesla delivered two dual motor all-wheel drive configurations and, in the first half of 2015, Model S became the best-selling electric vehicle in the US. In September 2015, Tesla launched its third vehicle, the Model X crossover. It is developing further models, with the Model 3 design, a mass-market compact saloon, due to launch in Q1 2016.

Tesla has invested heavily in its retail experience in its stores and now has more than 125 sales and service locations globally. In the UK, Tesla operates stores in Edinburgh, Stockport, Knutsford, Birmingham, Bristol, Crawley, Kent, Weybridge, West Drayton, Brent Cross and Westfield London, with further stores planned.

Tesla Motors Limited has a Creditsafe rating of 92 (Very Low Risk). The company is at the start of an aggressive growth curve, as reflected in the last two years’ accounts summarised below:

Year to Date Turnover Pre Tax Profit Shareholder Funds

31/12/2014 £48,716,196 £2,397,478 £6,554,083

31/12/2013 £6,571,152 £192,735 £2,375,233




Motor Retail Investment MarketBoth institutional and private investors continue to be attracted to the sector due to the strong financial standing of the majority of tenants, the opportunity for guaranteed rental uplifts and the long term commercial viability of the majority of sites due to their prominent roadside locations.

We set out below a schedule of recent investment transactions (further details are available upon request):

Property Lease Tenant Date Price (NIY)

Ford, Birmingham Expires May 2027 Bristol Street First Investments Ltd Under Offer Quoting offers of £4,500,000 (6.83%)

Nissan, Bristol Expires January 2036 Nissan Motor (GB) Ltd January 2016 £6,025,000 (4.58%)

Volvo, Sunderland Expires September 2022 Inchcape Estates Ltd December 2015 £1,700,000 (6.17%)

MINI, Harrogate Expires July 2025 Pendragon Property Holdings Ltd (guaranteed by Pendragon Plc)

October 2015 £1,925,000 (5.2%)

BMW/MINI, Tring Expires 2019 & 2034 Specialist Cars Tring Ltd and Malthurst Petroleum Ltd

August 2015 £7,620,000 (4.85%)

Tesla, Crawley Expires August 2021 Tesla Motors Ltd July 2015 £2,151,000 (7.47%)





DISCLAIMERDate: February 2016GVA is the trading name of GVA Grimley Limited, conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: i.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. ii.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. iii.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. iv.) All rentals and prices are quoted exclusive of VAT.

Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.

Richard Harding [email protected]: 020 7318 1930

Chelsey Henderson Bilfinger [email protected] Tel: 0121 609 8269

Paul Taylor Bilfinger [email protected]: 0121 609 8455

Further Information VATThe property is elected for VAT, which will therefore be payable on the purchase price. It is intended that the sale will be treated as a TOGC.

EPCThe property has an EPC rating of C. The full EPC certificates are available upon request.

PriceWe are instructed to seek offers in excess of £1,765,000 (One Million, Seven Hundred and Sixty Five Thousand pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 7.5%.

Further InformationFor further information or to make arrangements for a viewing, please contact:


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FREEHOLD CAR DEALERSHIP INVESTMENT · 2016-03-10 · FREEHOLD CAR DEALERSHIP INVESTMENT Tesla Motors 396 Wellington ... Airport Manchester Airport Chester Skelmersdale St Helens A5117