Nissan Bristol, Cribbs Causeway - Automotive Property Consultancy

FOR SALE
BRAND NEW FLAGSHIP CAR SHOWROOM INVESTMENT
Nissan Bristol, Plot E5, Hayes Way, Northfield Park, Cribbs Causeway, Bristol, BS34 5BZ
Investment Summary
• Situated within one of the country’s
premier retail destinations; close to
other car showrooms
• 5 yearly rent reviews to the higher of
Market Rent or RPI collared and
capped at 0% to 3% per annum
• Within Northfield Park
– www.northfieldbristol.com
• Rent – £292,000 per annum (£16.04
psf)
• Let to Nissan Motor (GB) Ltd (D&B
Rating 5A1) for a term of 20 years
from completion
• Practical Completion scheduled for
18th December 2015
Location
Bristol is the largest city in South West England and one of England’s eight ‘Core Cities’. It has an estimated
resident population of 428,200 which is expected to reach 472,900 by 2021.
Bristol is located approximately 115 miles west of London. The city is connected by road east to west from
London to Wales by the M4 motorway, and north to south west from Birmingham to Exeter by the M5 motorway.
There are two principal railway stations, Bristol Parkway and Bristol Temple Meads. The city is also served by its
own airport which offers services to major European destinations.
Northfield Business Park is located 7 miles north of Bristol City Centre in a prominent location near the intersection
of the M4 and M5 motorways and the A38 at Cribbs Causeway. The Park, lying between the Cribbs Causeway
retail and leisure destination and a major new residential development by Bovis, is being developed by Goodman
to create a mixed use commercial development in a high quality landscaped environment.
This prominent site lies on Hayes Way next to a roundabout junction. Hayes Way is a busy new link road which
runs from the A38 near the Royal Mail depot at Filton to The Mall shopping centre at Cribbs Causeway, where
retailers include; John Lewis, Marks & Spencer, Boots and Next. This shopping centre provides 780,000 sq ft
(72,464 sq m) of accommodation. The roundabout junction will be one of the main accesses to the Filton Airfield
Development being promoted by BAE Systems, where planning has been obtained for the development of 2,675
new houses situated on 143 hectares along with health, business, schools, leisure and other uses. The
development is also expected to create a further 7,785 jobs. Persimmon are also planning to construct a further
1,100 new homes south of Filton Airfield.
CGI of the completed dealership
Surrounding are retail parks totalling 650,000 sq ft (60,386 sq m) where occupiers include Argos, PC World,
Harveys, Asda, Toys R Us, B&Q, DFS, Porcelanosa, TK Maxx, Maplin, Costa Coffee, Halfords, and Tesco Home
Plus. Supermarkets include Asda, Morrisons and Makro. There is also the Venue Leisure Park which includes a
VUE cinema. It has a total catchment population of 4 million with 63% of shoppers living within a 30 minute drive
time and an annual footfall of 12.6 million visitors. Nearby car dealerships at Cribbs Causeway include; Ford,
Audi, Mercedes-Benz, Honda, Peugeot, BMW, Mini, and Porsche.
Caerwent
J1
M48
M48
Sudbrook
J23
A403
M4
Sev
ern
Brid
ge
Undy
Nissan Bristol
Plot E5, Hayes Way, Northfield Park
Cribbs Causeway, Bristol, BS34 5BZ
M4
Redwick
Redw
edwick
J22
M5
Awkley
B0455
B0455
A403
Mouth of
The Severn
A38
J21
M5
Easter
Compton
C
M49
J15 / J20
J16
Winterbourne
Winterbourne
A432
Northfield
Park
A403
Avonmouth
Portishead
Redcliffe Bay
M5
A4162
A4174
A38
J2
TO
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M4
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A38
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A38
RO
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LYSAND
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YE
HA
ME
RLI
NR
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AY
SW
WAY
YES
HA
Nissan Bristol
TO BRISTOL
TO M5
& M4
A420
A431
A4053
A405
Knowle
Bristol Airport
19 Miles
A4175
A4017
Eastville
A420
Bristol
A470
Wraxall
Tickenham
Tickenham
IS
CON
M5
A4
M5
ER
ST
CE
U
O
GL
A432
A4176
A369
M4
Southmead
J1
Lower
Failand
J1 / J19
A4174
A4
J19
A369
Filton
ton
A4018
8
J18
J18a
M4
A38
J17
A4174
A431
Highwood Road
M5 J16
Charlton Way
Northfield West
Multi-use space (15.44 acres)
A38
Cribbs Causeway
Regional Shopping
Centre
Hayes Way
Rolls Royce
Royal Mail
M5 J17
Nissan Bristol
(1.8 acres)
Completion December 2015
Ford Dealership
(2.52 acres)
Opened July 2013
Northfield East
Planning consent for four office buildings
161,500 sq ft (8.69 acres)
Description
Tenure
A brand new purpose built Nissan dealership is being constructed
totalling 18,202 sq ft (1,691.29 sq m) on a site of 1.79 acres
(0.724 hectares), together with ancillary servicing, repair and
MOT facilities. Landscaping, external storage, vehicle display,
parking and associated works also to be provided.
Freehold.
Tenancy
The property is to be let to Nissan Motor (GB) Ltd on full
repairing and insuring lease for a term of 20 years commencing
from completion of the Lease at a commencing rent of £292,000
per annum. With 5 yearly rent reviews to the higher of Market
Rent or RPI collared and capped at 0% to 3% per annum. The
Lease is to be completed within 10 working days from practical
completion of the Property as certified under the Agreement for
Lease. Practical Completion is scheduled for 18th December
2015.
The building will comprise reinforced concrete ground bearing
slab, steel frame with concrete planks to first floor, “Kingspan”
roof cladding with roof lights, external wall cladding, curtain wall
glazing and internal fit-out to dealer specification. Externally
tarmacked parking area, soft and hard landscaping, screened
refuse store and covered cycle store, drainage, services,
and signage bases, with Rhino fixed hoop barriers along the
boundary.
The premises are to be underlet to Wessex Garages Holdings
Limited who will operate the Nissan business.
Northfield Park Masterplan
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CGI of the completed dealership
Y
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HAYE
TO M5 J17
MER
LIN
ROA
D
Nissan Bristol
(1.8 acres)
Completion December 2015
Ford Dealership
(2.52 acres)
Opened July 2013
Covenant
Franchise Background
In the UK, Nissan had a 2014 market share estimated at 5.69%, and a 5.90% market share
2015 to date. The following table shows that Nissan rank 5th in the UK by number of new
car registrations.
Nissan Motor Company is a multinational car manufacturer headquartered in Japan.
In 1999, Nissan entered a two way alliance with Renault which owns nearly half of Nissan
while Nissan holds 15% of Renault shares. Together they sell more than 1 in 10 cars
worldwide employing more than half a million people. In 2010, a further alliance was made
with Daimler where Daimler exchanged a 3.9% share of its holdings for 3.9% from both
Nissan and Renault. This triple alliance provided lower costs to Nissan who benefit from
the synergy between the three manufacturers. Eight major global brands operate under the
alliance: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Venucia.
Ranking
Marque
2015
% Market Share
1
Ford
213,245
13.05
2
Vauxhall
168,252
10.29
3
Volkswagen
143,178
8.76
4
Audi
104,863
6.42
5
Nissan
96,494
5.90
6
BMW
94,596
5.79
7
Mercedes-Benz
88,899
5.44
8
Peugeot
67,718
4.14
9
Toyota
62,509
3.82
10
Hyundai
55,119
3.37
2014 Global sales increased 4.1% year-on-year to 5,310,064 units, with European sales
increasing 13.4% year-on-year to 738,730 units, marking an all-time calendar year record.
Nissan’s global production also increased 3.0% year-on-year to 5,097,772 units, achieving
another all-time calendar year record.
Nissan took two of the top 10 spots for the best-selling UK cars during 2014. The Juke
and the Qashqai were awarded 10th and 6th spot respectively. Consequently, these
two models are responsible for over 75% of all Nissan used car sales for the average
UK dealership. The Juke is responsible for 50% of all new car sales while the Qashqai
accounts for 26.5%. Overall, UK Nissan dealers have an average new to used car ratio
of 0.6:1.
Nissan Motor (GB) Limited (02514418) has a Dun and Bradstreet rating of 5A 1 representing
a Minimum Risk of Business Failure. We have provided below a summary of the recent
financial performance:
31 Mar 2014
(000’s)
31 Mar 2013
(000’s)
31 Mar 2012
(000’s)
1,681,971
1,483,331
1,360,454
15,849
6,390
7,152
Tangible Net Worth
115,910
88,247
83,571
Net Current Assets (Liabilities)
102,663
74,210
69,257
Sales turnover
Profit / (Loss) before tax
Nissan have led the way in producing zero emissions cars and were manufacturers of the
very first UK built electric car, the Leaf. Built in Sunderland, the leaf Global sales totalled over
158,000 units at the end of 2014. Nissan’s expansion into the electric car sector follows their
dominance in the cross-over sector with the Nissan Qashqai, Juke and the recently released
Nissan Pulsar.
Nissan GB’s car dealer network has seen a rise in dealer profitability in Q2 of 2015 with
dealers achieving a 1.5% average return on sales for its network. The 1.5% average return is
a 66% improvement year-on-year. Nissan say new car sales gross profit has risen by 42.9%,
while service gross profit rose 12.2% and parts by 9.6%.
Accommodation
According to the latest plans, the Gross Internal Area of the property will be as follows.
SQ FT
SQ M
5,536
514.31
Offices
978
90.86
Ancillary
428
39.76
Workshop Ancillary
418
38.83
3,816
354.52
MOT Bay
635
58.99
Parts
832
77.29
Valet Bays / Wash Bay
952
88.44
13,595
1,263.01
1,689
156.91
Ancillary
637
59.18
Oil tanks / Compressors
352
32.70
HQ Offices
1,932
179.49
SUB TOTAL GIA
4,608
428.28
18,202
1,691.29
Showroom
Workshop
SUB TOTAL GIA
First Floor
Offices
TOTAL GIA
Demonstrators
12
Used Car Display
76
Customer Parking
35
Service Parking
13
Staff Parking
22
Storage Parking
18
TOTAL PARKING
176
Site Area: 1.79 acres (0.724 hectares). Producing a site density of 23%
Measurement subject to confirmation on Practical Completion.
Rental Comparables
Special Notice
We set out below the occupational activity considered most relevant to the property:
There is an absolute prohibition against applying for any change of use of the property
or extension of the building prior to 14 March 2018 to ensure compliance with an overage
agreement binding the Vendor and successors in title.
• Brunel Ford, Charlton Way, Northfield Business Park Cribbs Causeway, Bristol BS34
7ST. Letting in May 2013 to Ford Retail on a new 20 year lease with 5 yearly reviews to the
higher of Market Rent or RPI collared and capped at 0-3% per annum at a commencing
rent of £300,000 p.a. divided between a “dealership rent” of £243,013 pa (£17.18 psf) for
a 14,145 sq ft dealership plus an additional compound at a rent of £56,987 per annum on
a 2.48 acre site. A breakdown analysis shows; showroom & offices £22.50 psf, workshop,
parts & ancillary £8.50 psf, prime display spaces £750, Secondary display spaces £475
per space.
Capital Allowances
Capital Allowances will be available to the purchaser and further details are available
on request.
Rateable Value
To be assessed.
• Honda, Lysander Road, Bristol BS10 7UG. 15,127 sq ft. Lease Re-Gear in August 2013
at £295,887 (£19.56 psf). A breakdown analysis shows; showroom £22.50 psf, workshop
£8.50 psf and display spaces at £750.
• Nissan, Bircholt Road, Parkwood Estate, Maidstone, Kent, ME15 9YN. 15,726 sq ft
on 1.04 acres. Letting March 2015 at £250,000 (£15.90 psf). 5 yearly upward only rent
reviews indexed to RPI, with the first 5 years subject to a minimum increase of 2% pa
compounded and a maximum increase of 4% pa. Thereafter 5 yearly rent reviews indexed
to RPI, subject to a minimum increase of 1.50% p.a compounded and a maximum
increase of 4.00% pa compounded. A breakdown analysis shows; showroom & offices
£20psf, workshop, ancillary & parts £9psf, first floor office £9psf, used car display spaces
at £700 and all other spaces valued at £200.
Town Planning
The site falls within the Northfield Development Area which was granted outline planning
consent in March 2008 (Application No. PT03/3143/O). The permission covers the site of
some 81 hectares (200 acres) of mixed use development, principally for 2,200 new dwellings
and 66,000 sq m (710,424 sq ft) of employment space in Use Classes B1, B2 and B8.
The site was granted planning permission on 31st October 2014 for the “Erection of a motor
dealership facility to provide vehicle sales, servicing and repair, MOT testing facility, together
with associated storage, vehicle display and parking, ancillary uses and landscaping.”
(Application No. PT14/1516/F). It was later granted a variation on 30th March 2015 to
increase the floor space of the dealership (Application No. PT14/5040/RVC).
Construction Warranties
Warranties will be provided to the purchaser from the Building Contractor and design team
(Architect and Civil/Structural Engineer) and the following sub-contractors – Steel Frame,
Curtain Walling and M+E Installation.
EPC
To be assessed.
VAT
The property has been elected for VAT.
Proposal
We have been instructed to seek offers of £5,810,000 (Five Million Eight Hundred
and Ten Thousand Pounds) for our Client’s Freehold interest, subject to contract and
exclusive of VAT. A purchase at this level reflects an initial yield of 4.75% (assuming costs
at 5.8%).
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M5
J17
y Willow Brook
Centre
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M5
Exeter
84 Miles
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M4
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Br
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Sto
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B
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B40
Gloucester
36.9 Miles
Ba
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B4
Goodman
Aztec West
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Bl
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J15 / J20
J16
M5
B4
05
5
Cardiff
41.2 Miles
A38
ne
La
M5
Glouceste
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Almondsbury
Bristol
Parkway Rail
Filton
Further Information
Viewing strictly by prior arrangement. For further information please
contact either:
BILL BEXSON
M: 07831 827 442
E: [email protected]
IMPORTANT NOTICE
Automotive Property Consultancy for themselves and for the Vendors or Lessors of this property whose agents they are given notice that:
(1) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part of an offer or contract.
(2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and their 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 must satisfy themselves
by inspection or otherwise as to the correctness of each item.
(3) no person in the employment of Automotive Property Consultancy has any authority to make or give any representation or warranty whatever in relation
to this property or these particulars, nor enter into any contract relating to the property on behalf of Automotive Property Consultancy nor any contract on
behalf of the vendor.
(4) no responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties which have been sold, let or
withdrawn. October 2015.
CHARLIE DALTON
0203 588 7200
M: 07733 535 952
E: [email protected]
Please note all internal photographs and totem pole photograph are of the new Nissan dealership in Maidstone, which completed in January 2015, and is a
model for the new Nissan Bristol dealership.