Roadside Investment Let to Kwik-Fit
Kwik-Fit | Burnt Tree | Dudley | DY4 7UF
subject to contract
Highly prominent roadside location
Secure income – let to Kwik-Fit (Pre-Tax Profits £99.9m)
Sub-Tenant - Enterprise Rent-A-Car (Shareholders' Funds £223m)
In excess of 8 years unexpired lease term
Large site offering potential future redevelopment opportunity, subject to planning
Low site cover of 17.6%
£740,000, subject to contract
6% net initial yield
Dudley is a strategic market town and administrative centre in the densely populated county of West Midlands. The town is 9.5 miles (15.3 km) west of Birmingham and 5.5 miles (8.85 km) south of Wolverhampton.
Dudley is 4 miles (6.44 km) to the south east of Junction 2 of the M5 Motorway via the A4123. Plans are approved for a new Metro Station in Dudley connecting the town to Birmingham City Centre.
The property occupies a prominent roadside position on a major arterial route fronting Burnt Tree which extends to Dudley Port to the north and Birmingham Road to the south, after the Burnt Tree Junction.
The property is equidistant from Tipton town centre and Dudley town centre and sits on the A461 which connects the two towns.
The immediate vicinity is made up of a mix of residential accommodation (opposite) and industrial/retail warehousing accommodation (to the rear).
Nearby business include a Tesco Extra and petrol filling station, We Buy Any Car Dealer, Toolstation, Screwfix, Coneygre Industrial Estate, Showcase Cinema, Nandos, Pizza Hut, McDonalds, Premier Inn Hotel and various other complementary businesses.
Dudley Port Station is 0.8 miles (1.3 km) from the property and provides regular trips to London Euston with the fastest journey time being approximately 2 hours and 8 minutes.
The property comprises a single storey building and a large gated forecourt/car park with an outdoor canopy.
The building and forecourt has been split in order to accommodate the two subtenants (Enterprise Rent-A-Car and Thomas’s Group) and benefits from two separate entrances.
The property benefits from 3 roller shutters, and internal office, staff room and car servicing accommodation.
The property has been measured by BKR Floor Plans and provides the following accommodation:
|Gross Internal Area||533.99 sq m||5,748 sq ft|
A set of floor plans are available to download and will be re-addressed to a purchaser at a cost of £385 + VAT.
The total site area is approximately 0.75 acres (3,035 sq.m / 32,670 sq.ft).
The property benefits from a road frontage of approximately 420 feet (128 metres).
Low site cover of 17.6% offering future redevelopment potential, subject to planning.
The property is fully let to Kwik-Fit Properties Limited, with a guarantee from Kwik-Fit Holdings Limited, on a full repairing and insuring lease for a term of 30 years from 27th February 1999, expiring on 23rd February 2029 (approximately 8 years unexpired lease term).
The current passing rent is £46,738 per annum (£8.13 per sq ft). The lease benefits from an upwards only rent review on 27th February 2024.
Kwik-Fit has sublet part of the property to Enterprise Rent-A-Car UK Limited for an annual rent of £21,600 with the next upward only rent review being in February 2021. The sub lease expires on 10th February 2026.
The remaining part of the property was sublet to Thomas’s Group (Birmingham) Limited who are a van hire company. Thomas’s Group will be vacating on 14th April 2021.
The tenant’s ultimate parent company is Intochu Corporation who reported consolidated net profits of 501.3 billion yen (£3.66 billion pounds) to 31st March 2020. The company is ranked 72nd on the list of Fortune Global 500 companies with an annual trading revenue of $100.5 billion (£77.5 billion). For more information visit: www.itochu.co.jp/en.
Guarantor - Kwik-Fit Holdings Limited (00362333) has reported the following figures:
|31st March 2020||31st March 2019|
Tenant - Kwik-Fit Properties Limited (02579167) has reported the following figures:
|31st March 2020||31st March 2019|
Established in 1971, Kwik-Fits principal activities are the operation of automotive repair centres for tyres, exhausts, brakes, suspension, MOT, servicing and a fleet of mobile tyre fitting vehicles. The company operates from over 600 specialist fitting centres and 150 mobile fitting vehicles in the UK. For more information visit: www.kwikfit.com.
Sub-Tenant - Enterprise Rent-A-Car UK Limited:
|31st July 2019||31st July 2018|
Enterprise Rent-A-Car is a car rental company with more than 7,900 locations in 100 countries and 419 airports. The primary focus of the company is the local rental market, specializing in replacement cars as a result of accident, mechanical repair, theft and general hire. In 2008 the company was 21st on the Forbes list of ‘Largest Private Companies in America’.
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers of £740,000 (Seven Hundred and Forty Thousand Pounds), subject to contract. This price reflects a net initial yield of 6%, assuming purchasers’ costs of 5.38%.
Please note that a purchaser will be re-charged the cost of searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT.
An opportunity to acquire a freehold roadside investment
The property occupies a prominent roadside location;
The property provides secure income, being let to Kwik Fit (Pre-Tax Profits £99.9m);
Sub-Tenant (Enterprise Rent-A-Car) have reported shareholders’ funds of £223.6 m;
Attractive unexpired lease term in excess of 8 years;
0.75 acre site;
Low site cover of 17.6% offering future redevelopment potential, subject to planning;
Opposite residential accommodation;
Ultimate parent company ranked 72nd on the list of Fortune Global 500 companies
Attractive lot size for an investor
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