Highly Prominent Roadside Investment Let to Nissan with Redevelopment Potential
Nissan | Kingsway | Rochdale | Greater Manchester | OL16 4AB
subject to contract
Freehold roadside investment
Highly prominent location
Let to Nissan Motor (GB) Ltd
Secure income – Shareholders’ Funds £186 million
Tenant recently signed lease renewal
Low rent - £10.00 per sq ft
Low site cover of only 22%
The property offers an interesting redevelopment opportunity, should the current tenant vacate
£1,100,000, subject to contract
6.7% Net Initial Yield
Rochdale is one of the Metropolitan Boroughs of Greater Manchester located approximately 19 km (12 miles) north east of Manchester City Centre, 50 km (28 miles) south west of Leeds and 61 km (38 miles) north east of Liverpool.
The town is well served by northwest motorway network being linked by the A627 (M) to Junction 20 of the M62 which connects to the M66, M61 and M60 motorways. Rochdale also benefits from a direct rail service to Manchester Victoria with a journey time of approximately 15 minutes. Manchester Airport is situated 45 km (28 miles) to the south of the town.
The subject property occupies a highly prominent position fronting the busy A664 (Kingsway), approximately 2.4 km (1.6 miles) east of Rochdale Town Centre. The A664 is one the main arterial routes around the outskirts of the town and can be accessed from the town centre via Oldham Road (A671), Queensway (A664) from the west and Rochdale Road (A640) from the east which in turn provides access to the M62 Motorway. Junction 21 is approximately 2.4 km (1.5 miles) to the south east.
The property is adjacent to Kingsway Retail Park, Rochdale's principal retail park. Totalling approximately 8,547 sq m (92,000 sq ft), retailers include Asda, The Range, Pets at Home, The Food Warehouse, Sports Direct, McDonald's, Costa, Greggs and Subway.
Blueberry Business Park is also situated to the rear of the property providing a number of business units. The surrounding area also comprises residential.
The property comprises a purpose-built car showroom, parts store and service workshop constructed in the 1990’s. The building is of steel portal framed construction with part brick part profile metal clad elevations. The roof is pitched with profile metal clad covering.
Internally the showroom area provides a vehicle display area, a reception and two partitioned offices to the rear. At first floor level there is additional office accommodation together with a staff kitchen and toilets.
A parts store is situated adjacent to the showroom area which is accessed via roller shutter doors. A mezzanine floor is incorporated in this area for additional storage. Opposite the parts store is an ancillary area providing an office plus a disabled toilet.
The service workshop is situated adjacent to the parts store comprising space for 4 car lifts.
Externally, a glazed valeting bay is situated to the rear of the workshop area. A total of 74 customer and display parking spaces are found to the rear and side elevation of the building. The perimeter of the site is flood lit and benefits from CCTV.
We have been advised the property provides the following accommodation:
|Gross Internal Area|
|Sq M||Sq Ft|
|Parts Store (Ancillary)||122.05||1,313|
|Parts Store (Mezzanine)||56.18||605|
|First Floor Offices||94.75||1,020|
|First Floor Ancillary||31.55||340|
|Total Gross Internal Area||720.59||7,756|
We estimate the site area to be approximately 0.32 hectares (0.81 acres), providing a low site cover in the order of 22%.
Planning & Redevelopment Potential
The current use is as a car showroom and garage with ancillary servicing and repair.
In response to the COVID-19 pandemic, the Government has introduced radical reforms to the planning system and Use Classes Order. As of 1st September 2020, new planning regulations will allow significantly greater flexibility for buildings and land to change use without the need to obtain planning permission. For further information see here.
Therefore, it is suggested that the site has redevelopment potential with a wide range of possible uses.
The property is entirely let to Nissan Motor (GB) Limited on a full repairing and insuring lease for a term of 5 years from 14th February 2020, expiring on 13th February 2025. There is a tenant’s break option on 14th August 2022, subject to nine months’ prior written notice.
The current passing rent is £77,500 per annum (£107.55 per sq m / £10.00 per sq ft).
The property has been underlet to Aprite (GB) Limited from 14th February 2020, expiring 11th February 2025, subject to a break option on 14 August 2022, subject to nine months’ prior written notice, at a rent of £77,500 per annum. The underlease is excluded from Sections 24 to 28 of the Landlord and Tenant Act 1954.
The tenant has been a lessee since 1999 and entered into a lease renewal in February 2020.
Nissan Motor (GB) Limited (Co. No. 2514418) has reported the following figures for the year ending 31st March 2019;
Nissan Motor (GB) Limited is the sales and marketing company responsible for the distribution of all Nissan products in the UK. The company is headquartered in Maple Cross, Hertfordshire. Established in 1991, the company is a wholly owned subsidiary of Nissan Motor Co. Ltd. For further information visit www.nissan.co.uk.
The immediate parent undertaking of Nissan Motor (GB) Limited is Nissan Holdings (UK) Limited (Co. No. 3920636) which is a holding and investment company. For the year ending 31st March 2019, the company reported Shareholders’ Funds of €963,268,000.
Established in 1933, Nissan manufactures vehicles worldwide. The company sells its cars under the Nissan, Infiniti and Datsun brands with in-house performance tuning products labelled Nismo. Global demand in fiscal 2018 was 92.09 million vehicles. Nissan’s global sales volume was 5.52 million vehicles and global market share was 6.0%.
For the year ending 31st December 2018 the undertenant, Aprite (GB) Limited, reported a Turnover of £468,382,000 and Net Assets of £13,516,000. The ultimate parent undertaking and controlling party is Nissan Motor Co. Ltd.
The property has been elected for VAT. It is anticipated that the sale of this property will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking offers in the region of £1,100,000 (One Million, One Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 6.7% assuming standard purchaser’s costs of 5.85%
Please note that a purchaser will be re-charged the costs of the searches which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
An opportunity to acquire a freehold roadside investment;
The property occupies a highly prominent roadside location fronting one of the main arterial routes around the town;
The investment provides secure income;
The tenant has been in occupation for over 20 years and recently extended their lease, demonstrating their commitment to the property;
Future redevelopment potential, subject to obtaining the necessary planning consents;
A purchase at the asking price will provide an investor with an attractive net initial yield.
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