CARCRAFT

CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
WELL LET CAR SUPERMARKET INVESTMENT
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
SUMMARY
LOCATION
DESCRIPTION
COVENANT
TENANCY
GALLERY
CONTACT US
INVESTMENT SUMMARY
• Well located prominent car supermarket site
• Substantial site of 9.98 acres (4.04 hectares)
• 10,753.72 sq m (115,710 sq ft) of accommodation with a surplus site area of at least 4 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 summary financials for the business for the y/e 2011 are a T/O of £130.2 million, EBITDA of £2.8million and Shareholders Funds of £35.0million.
• 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 £605,724 per annum.
• Offers are sought in the region of £6,025,000 (Six Million and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT
• This reflects a net initial yield of 9.50% increasing to 10.75% in Year 5 after purchasers costs of 5.80%
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
LOCATION
SUMMARY
COVENANT
DESCRIPTION
TENANCY
GALLERY
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LOCATION
SITUATION
Sheffield is located approximately 35 miles South of Leeds, 40 miles East of Manchester and
150 miles North of London and is recognised as the pre eminent city within South Yorkshire with
a population of circa 535,000. Sheffield is accessed by Junctions 31 to 36 of the M1 Motorway
which is the principal North – South motorway in the country. The M18 motorway is located at
Junction 32 of the M1 and provides ongoing access to Doncaster, Hull, Grimsby and the East of
the country. In addition the M62 motorway is located approximately 25 miles North of Sheffield
and serves traffic running from the East to West coast of the country.
The subject property is located approximately 4 miles east of Sheffield City Centre adjacent to
Sheffield Business Park and Shepcote Business Park and is in close proximity to junctions 33 and
34 of the M1. Surrounding areas incorporate a mixture of uses including the residential area of
Tinsley and the Meadowhall Shopping Centre as well as HQ logistics and office accommodation.
A64
A65
YORK
M6
A59
BRADFORD
LEEDS
HULL
M62
MANCHESTER
M62
M1
M18
EUROPA LINK
CARCRAFT
A1(M)
SHEFFIELD
M56
A1
A57
A1
A6
NOTTINGHAM
DERBY
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M6
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A1
M1
LEICESTER
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
SUMMARY
LOCATION
DESCRIPTION
COVENANT
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GALLERY
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DESCRIPTION
ACCOMMODATION
The subject property comprises a 1997 built, very well presented warehouse with significant hard
standing areas that has been fitted out for its current use as a car showroom and workshop.
We have been provided with the following floor areas in accordance with the RICS Code of
Measuring Practice 6th Edition on a GIA basis:
• 3 bay steel portal framed warehouse
• Profile cladding to the elevations and roof
• Part glazed elevations and customer entrance
• Concrete floors
• Sodium pendant lighting
Floor
Use
Sq Ft
Sq M
Ground
Warehouse etc
73,611
6,838.64
Ground
Workshop
27,006
2,508.98
Ground
Offices
5,850
545.33
First
Offices
7,361
683.89
Ground
Outbuildings
1,882
174.93
115,710
10,753.72
Total
• Suspended gas heaters
• Full height electric roller shutter doors
The site extends to approximately 9.98 acres (4.04 hectares) and reflects a very low site cover of
23.5%.
• Integral office accommodation inclusive of lift, suspended ceilings, raised floors
We believe there is at least 4 acres (1.62 Hectares) of surplus land.
and comfort cooling
• Customer canteen, crèche and ‘deal rooms’
• Male, female and disabled WC’s
• Extensive tarmacadam, floodlit car display, storage areas and customer parking
• Security gatehouse operating a barrier entry and exit system
• Secure metal fencing to the perimeter of the site
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
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
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
SUMMARY
LOCATION
DESCRIPTION
COVENANT
TENANCY
GALLERY
CONTACT US
TENANCY
Our client has agrees terms for a new lease as follows:TENANT
CC Automotive Ltd
REPAIR
Full repairing and insuring terms subject to a Schedule of Condition.
VAT
GUARANTOR
Pennine Metals A Ltd (PMA Ltd) and Pennine Metal C Ltd (PMC Ltd)
TERM
The lease will be for a term of 20 years from the completion of legal documentation.
TENANT 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.
RENTAL
£605,724 per annum.
RENT REVIEW
The rent shall be reviewed on the 5th, 10th and 15th anniversaries of the commencement of the
contractual term to the higher of the passing rent or the open market value.
The property is elected for VAT.
PLANNING
We understand the current planning permission permits for the site to be used as a car
supermarket under a Sui Generis use.
The property is allocated under the Sheffield City Council Unitary Development Plan adopted in
1998, as being located in a fringe industry and business area.
ASSET MANAGEMENT OPPORTUNITIES
The value of the investment is underpinned by the quality of the development, suitability for
alternative uses and extensive site areas.
The rental at year 5 will be increased to a minimum of £685,321 per annum (2.5% per annum
compound).
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
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CARCRAFT
EUROPA LINK, SHEFFIELD BUSINESS PARK, SHEFFIELD S9 1XU
SUMMARY
LOCATION
DESCRIPTION
COVENANT
TENANCY
GALLERY
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PROPOSAL
We are instructed to seek offers of £6,025,000 (Six Million and Twenty Five Thousand Pounds) subject to contract, for our client’s freehold interest. A purchase at this level reflects a net initial yield of
9.50% and a reversionary yield in Year 5 of 10.75% 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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