CARCRAFT

CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
WELL LET HIGH YIELDING CAR SUPERMARKET INVESTMENT
ENTER
CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
SUMMARY
LOCATION
DESCRIPTION
COVENANT
PROPOSED LEASEBACK
GALLERY
CONTACT US
INVESTMENT SUMMARY
• Well located prominent car supermarket site.
• Substantial site fronting onto Spytty Road which is Newport’s southern ring road.
• 13,682 sq m (147,222 sq ft) of accommodation with a surplus site area of at least 5.2 acres.
• Let on an overriding lease to CC Automotive Limited with a guarantee from Pennine Metals A Ltd and Pennine Metals C Ltd.
• The key financials for the business for the y/e 2011 are a T/O of £130.2 million, EBITDA of £2.8 million and Shareholders Funds of £35.0 million.
• A 20 year full repairing and insuring lease (with a TOB at year 15) with 5 yearly upwards only rent reviews. The first review has the benefit of a fixed increase
to reflect 2.5% pa compound.
• Total rental income of £620,100 per annum.
• Offers are sought in the region of £5,330,000 (Five Million Three Hundred and Thirty Thousand Pounds) subject to contract and exclusive of VAT
• This reflects a net initial yield of 11% increasing to 12.45% in Year 5 after purchasers costs of 5.80%
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
LOCATION
SUMMARY
COVENANT
DESCRIPTION
PROPOSED LEASEBACK
GALLERY
CONTACT US
SITUATION
LOCATION
Spytty Road forms part of the A48 Southern Ring Road, which links the out of town areas
of Newport with junction 24 of the M4 about 3 miles to the East of the subject property. Spytty Road leads directly to Newport City Centre approximately 2 miles to the North of
the site.
The city of Newport in South Wales is located 11 miles North East of Cardiff and 18 miles
North West of Bristol and has a current population of approximately 160,000. The M4
motorway which connects London with the West Country and South Wales is to the North
of Newport and accessed by junction 24 to 28. Surrounding areas are used for industrial, retail warehousing and residential uses. Newport International Sports Stadium and Newport Retail park are a short distance to
the East. Local occupiers include Euro Foods Group, BOC Sureflow, Robert Price Building
Merchants, B&Q, PC World, JJB, Next and Boots.
25a
M4
2
A404
B45
91
A46
7
24
25
A48
A48
OXWICH RD
MEA
DOW
S
LEE WAY
239
B4
8
A4
CORPORATION RD
A48
28
A48
A48
QU
EE
NS
WA
Y
A48
NASH RD
A48
LANGL
AND W
AY
A48
RD
A48 SOUTHERN DISTRIBUTOR RD
A48
M4
SO
ME
RTO
N
H RD
NAS
23a
A48
AY
KW
US
02
A4
B4240
2
A404
A468
27
B42
45
327
B4
B4327
A46
7
M4
RD
ON
ATI
OR
RP
CO
26
A48
A4042
A48
A48
B4239
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AERIAL
TRASTON RD
RD
SH
NA
A48
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
LOCATION
SUMMARY
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
SUMMARY
LOCATION
DESCRIPTION
COVENANT
PROPOSED LEASEBACK
GALLERY
CONTACT US
DESCRIPTION
ACCOMMODATION
The property constitutes two significant prominent sites separated by Langland Way, built in the
1970’s for Marconi and offering the following specification:
We have been provided with the following floor areas in accordance with the RICS Code of
Measuring Practice 6th Edition on a GIA basis: •
•
•
•
•
•
2 bay steel framed warehouse with brick and profile steel clad and glazed elevations
Integral two storey office accommodation with customer canteen and crèche
Male, female and disabled WC’s
Extensive floodlit car display, storage areas and customer parking
Security gatehouse operating a barrier entry and exit system
Detached valeting and workshop building
Use
Sq ft
Sq M
Ground
Warehouse etc
79,189
7,359.57
Ground
Offices
11,294
1,049.63
Offices
11,100
1,031.60
Ancillary workshop
3,457
321.28
105,050
9,762.08
2,610.13
Main Warehouse
First
Ground
To the east of Langland Way sits a purpose designed vehicle preparation building that was
constructed in the 1990’s and has the benefit of significant storage and car parking facilities.
Total
Former Car Preparation Building
Ground
Workshop
28,085
First
Workshop
14,087
1,309.20
Total
42,172
3,919.33
Overall Total
147,222
13,682.34
The site extends to approximately 14.36 acres (5.81 hectares) and reflects a very low site cover of
23.5%. We believe there is a least 5.2 Acres (2.1 Hectares) of surplus land.
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
SUMMARY
LOCATION
DESCRIPTION
COVENANT
COVENANT INFORMATION
Carcraft is the largest and most successful used car hypermarket dealer in the UK responsible for
the country’s most recognisable motoring brands including Carcraft, Van Lease Direct, U Can and
Motorstore. As well as car sales these businesses provide leasing plans, car financing, MOT’s,
servicing and motor trade spares.
Carcraft operates as a used car hypermarket with 11 large showroom sites across England
and Wales offering over 4,000 cars from over 40 manufacturers. The majority of sites cover at
least 10 acres and comprise of showrooms of circa 100,000 sq ft along with car preparation,
Autocentre and MOT facilities. Sites can stock up to 1,500 cars which provides the customer with
an unrivalled, market leading choice combined with a wide range of financing packages. The
largest competitor is Motorpoint who only operate from 5 sites.
Carcraft have excellent relationships with a number of institutional landlords including PRUPIM,
Peel and Aberdeen Asset Management.
Carcraft was founded in Rochdale in 1951 and remains 100% family owned. The current
business model was established in the early 1990’s and has proved highly successful in bringing
car ownership to the wider public. The company now employs approximately 700 people and
continues to expand and is actively seeking new sites to retail from.
Further information can be found at www.carcraft.co.uk
The Carcraft business (inc UK Car Group Ltd and CC Automotive Group Ltd) is now held within 2
holding companies, Pennine Metals A Ltd (PMAL) and Pennine Metals C Ltd (PMCL) following
a recent reorganisation of the Company. UK Car Group Ltd and CC Automotive Group Ltd are
subsidiaries of PMAL. All in One Finance Ltd is a subsidiary of PMCL. Both PMAL and PMCL are
guarantors on the lease.
Management has prepared proforma numbers for PMAL + PMCL for the year ends 09 to 12 to
show what trading would have looked like for the combined groups as they currently exist. A
summary of these key financials for the proposed guarantor are as follows:
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PMAL & PMCL
Year End
Total Turnover
EBITDA
Shareholders Funds
Sep 09
£141,052,000
£3,816,000
£28,144,000
Sep 10
£125,557,000
£1,337,000
£35,638,000
Sep 11
£130,184,000
£2,835,000
£35,025,000
Sep 12 (forecast)
£130,500,000
£2,926,000
£33,627,000
Trading to date has been very positive and we have included the forecasts for the year end 2012.
Further financial details and separate accounts will be made available to seriously interested parties.
Dun and Bradstreet give the following credit ratings:
• Pennine Metals A – 2A2 meaning a LOWER than average risk of business failure and a D&B Maximum
credit of £3,600,000.
• UK Car Group Ltd – 5A1 meaning a MINIMUM risk of business failure and a D&B Maximum Credit
of £267,000.
• CC Automotive Group Ltd – 2A2 meaning a LOWER than average risk of business failure and a D&B
Maximum credit of £3,500,000.
• Pennine Metals C – 2A2 meaning a LOWER than average risk of business failure and a D&B Maximum
Credit of £87,500.
IMPORTANTLY the site is owned by the shareholders, of PMAL & PMCL in a separate Investment Company.
There is a lease already in place and the rental liabilities have been paid by Carcraft (at the passing rent)
for in excess of 5 years. The sale will not therefore adversely affect the company’s accounts.
With the net proceeds of the sale the business plans to expand it’s very successful car finance arm and
launch a much larger consumer finance fund which they see as a huge opportunity in the current climate
where raising consumer finance is difficult.
PWC have prepared a detailed Financial Analysis Datapack which can be made available on a confidential
basis to interested parties.
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
SUMMARY
LOCATION
DESCRIPTION
COVENANT
PROPOSED LEASEBACK
PROPOSED LEASEBACK
VAT
Our client proposes to take a lease on the premises as follows:-
The property is elected for VAT.
TENANT
CC Automotive Ltd
GALLERY
CONTACT US
PLANNING
GUARANTOR
Pennine Metals A Ltd (PMA Ltd) and Pennine Metals C Limited (PMC Ltd)
TERM
The Lease will be for a term of 20 years from completion of legal documentation.
BREAK CLAUSE
The Tenant will have the right to determine their Lease on the 15th anniversary of the term
subject to providing a minimum six months prior notice.
We understand the current planning permission permits for the site to be used as a car showroom
under a Sui Generis use.
The property is not in an area identified for any specific use in the Newport Unitary Development
Plan (May 2006). Submissions have been made to Newport City Council to promote the inclusion
of this site for mixed use redevelopment in the Newport Local Development Plan.
RENTAL
£620,100
RENT REVIEW
The rent shall be reviewed on the 5th, 10th and 15th anniversaries of the commencement of the
contractual terms. To the higher of the passing rent or the open market value.
The rental of year 5 will be increased to a minimum of £701,586 per annum (2.5% per annum
compound).
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
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CARCRAFT
LANGLAND WAY, SPYTTY ROAD, NEWPORT, NP19 4PT
SUMMARY
LOCATION
DESCRIPTION
COVENANT
PROPOSED LEASEBACK
GALLERY
CONTACT US
PROPOSAL
We are instructed to seek offers of £5,330,000 (Five Million Three Hundred
and Thirty Thousand Pounds) subject to contract, for our client’s freehold
interest. A purchase at this level reflects a net initial yield of 11% and a
reversionary yield in Year 5 of 12.45% assuming purchasers costs of 5.80%.
CONTACT
For further information please contact:
Simon Wood
B8 Real Estate
6800 Daresbury Park
Warrington
WA4 4GE
Tel: 01925 320520
Mob: 07793 119210
Email: [email protected]
Web: www.b8re.com
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MISREPRESENTATION ACT: All Agents and for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute any part
of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person
in the employment of all agents has any authority to make or give any representation or warranty in relation to this property. i-brochure designed & produced by 90degrees.com. November 2012. Tel 0161 833 1890.
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