Northfield Drive, Northfield, Milton Keynes MK15 0EB

PROMINENT FREEHOLD INVESTMENT WITH FIXED ANNUAL UPLIFTS

• Purpose-built car dealership extending 10,009 sq ft (930 sq m), with a low site coverage of 23%.

• The property benefits from prominent frontage onto the busy Portway (A509) dual carriageway, in close proximity to Junction 14 of the M1 Motorway.

• Milton Keynes is a sought-after vehicle retailing destination benefiting from its excellent road and rail connections, and high population catchment density.

• Established commercial location with a critical mass of car showroom brands including Audi, Jaguar Land Rover, BMW, Mini, Tesla and SEAT.

• Let to Pendragon Property Holdings Ltd (D&B Rating 2A1), and sublet to LeasePlan UK Limited (D&B rating 5A1), one of the world’s leading vehicle leasing companies.

• Lease guaranteed by Pendragon PLC (D&B rating 5A1), the UK’s second largest automotive car retailer.

• Freehold investment with a passing rent of £209,663 pa (£20.95 psf), with annual fixed increases to 2.25% pa.

• An unexpired term of 6.3 years.

• Suitable for conversion to various alternative uses including drive through/drive to café or restaurants, self storage or trade counter, subject to the necessary planning consents.

INVESTMENT SUMMARY

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We are instructed to seek offers in excess of £2,186,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 9.00%, with purchaser’s costs of 6.60%. This price equates to a Capital Value of £218 psf.

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Northfield Drive, Northfield Milton Keynes MK15 0EB

PORTWAY/A509

MILTON KEYNESMILTON KEYNES VILLAGE

1 SEAT

2 TNT

3 Tesla

4 Enterprise Rent-A-Car

5 Westcoast

6 Audi

7 Jaguar Land Rover

8 Opal Court Business Park

9 IPSL

10 BMW

11 Mini

12 Coca Cola

13 Ball Beverage Can

14 House of Fraser

TO M1 JUNCTION 14

TO LUTON

TO MILTON KEYNES

MORRIS HOMES

Planning application for 208 dwellings

(17/00541/FUL & 17/02415/FUL)Planning Application for 2

logistics units of c. 280,000 sq ft (18/02462/EIASCR)

14

13

12

7

8

6

5

4

3

2

1

9

10

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LOCATION

SITUATION

Situated less than 1 mile from J14 of the M1, the property occupies a prominent position fronting the intersection of Portway (A509) and Northfield Drive, an arterial road connecting north east and south east Milton Keynes.

The property is situated within a well-established car showroom destination approximately 1 mile north of the Kingston retail Centre and Costco. The site therefore offers a range of potential other Roadside uses.

30 minute drive – 677,000 catchment area population

15 minute drive – 302,000 catchment area population

MILTON KEYNES CITY CENTRE 7 MINUTE DRIVE

M1 CORRIDOR JUNCTION 14 0.6 MILES | 2 MINS

LONDON LUTON AIRPORT 23 MILES | 35 MINS

MILTON KEYNES TRAIN STATION 3.9 MILES | 10 MINS

POPULATION OF 677,000 WITHIN A 30 MINUTE DRIVE

4

19

4

11

8

3A

10

7

16/1A

21/6A

23/1

M1

A1M

A1M

M1

M1

M25M40

M40

M40

M42

M42

M6

M6

M6

M6

M5

M5

M6T

M25

M25

9

20

9

11

2

15

11A

8A

15

21

14

13

15A

KETTERING

NORTHAMPTON

BLETCHLEY

RUGBY

LEICESTER

PETERBOROUGH

COVENTRY

LONDON

BIRMINGHAM

AYLESBURY

DUNSTABLE

STEVENAGE

A46

A421

A421

A1

A1

A43

A43A508

A5

A5

A5

A418

A413

A41

A423

A5130

NORTHFIELD DR

TON

GW

ELL ST

TON

GW

ELL ST

CHILDS WAYA

509

A416 C

HIL

DS

WA

YTONGWELL ST A416

A509 PORTWAY A509

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M1

DESCRIPTION

ACCOMMODATION

SQ FT SQ M

Showroom 3,646 338.7

Offices 763 70.9

Workshop 4,478 416.0

First floor

Offices / Staff 674 62.6

Store 449 41.7

TOTAL GIA 10,009 930.0

Display 36 parking spaces

Front Parking 38 parking spaces

General 30 parking spaces

TOTAL PARKING 104 parking spaces

The property GIA comprises:

UNIT SIZE10,009 SQ FT

GLAZED CAR SHOWROOMwith ground floor offices

VALET BAY & WORKSHOPwith mezzanine office, staff room and storage

TOTAL SITE AREA0.89 acres (23% site coverage)

STEEL FRAMED CONSTRUCTIONwith metal cladding panels

CORNER PLOTwith full circulation and wrap around car display area

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CHILDS WAY

NORTHFIELD DRIVE

TONGWELL STREET

PORTWAY A509

TO LUTON & M25TO NORTHAMPTON, M6 & BIRMINGHAM

TO MILTON KEYNES

M1 JUNCTION 14

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COVENANT

The property is fully let to Pendragon Property Holdings Limited and is sublet to LeasePlan UK Limited, in accordance with the below tenancy schedule.

Pendragon Property Holdings Limited is a subsidiary of Pendragon PLC, the UK’s second largest automotive car retailer and a constituent of the FTSE All Share Index and FTSE Small Cap Index. In the UK, the company has two key brands; Evans Halshaw for volume brands, and Stratstone for luxury brands. Combined, these operate over 180 retail and franchise locations nationwide, with a further 27 used, non-franchised locations across the country. Pendragon PLC also operate 10 outlets in the United States.

Subtenant

LeasePlan UK are one of the world’s leading car leasing companies. The company has been in business for over 50 years’ serving businesses and consumer clients, and operate 1.7 million vehicles in over 30 countries.

Tenant Lease Start Rent Review Break Date Expiry Passing Rent (p.a) Rent (£psf)

Pendragon Property Holdings Limited (headlease) 04/07/2005 30/10/2019 – 03/07/2025 £209,663 £20.95

LeasePlan UK Limited (sublease) 15/05/2018 15/05/2023 15/05/2022 02/07/2025 £165,000 £16.49

Pendragon Property Holdings Limited (Tenant) D&B rating of 2A1 representing “a minimum risk of business failure” (Dec 2018)

Pendragon PLC (Guarantor) D&B rating of 5A1 representing “a minimum risk of business failure” (Sept 2018)

LeasePlan UK Limited (Sub Tenant) D&B rating of 5A1 representing “a minimum risk of business failure” (March 2018)

2015 2016 2017 2015 2016 2017 2015 2016 2017

Turnover – – – £4,453,900,000 £4,537,000,000 £4,739,100,000 £4,000,400,000 £4,453,900,000 £4,537,000,000

Profit/(Loss) before tax (£1,815,000) (£1,594,000) (£5,421,000) £79,000,000 £73,000,000 £65,300,000 £64,600,000 £79,000,000 £73,000,000

Tangible Net Worth £1,846,000 £1,344,000 £2,087,000 £28,500,000 £10,600,000 £56,700,000 (£31,600,000) £28,500,000 £10,600,000

TENANCY INFORMATION

PLANNING POLICY

DEVELOPMENT POTENTIAL

Northfield Drive is within the jurisdiction of Milton Keynes Council and the car showroom is of a Sui Generis use. The Milton Keynes Proposals Map designates this site as ‘employment land’ and the Local Plan seeks to protect employment uses within such areas.

Northfield Drive is an established commercial district with a mix of uses. The park benefits from the proposed Morris Homes housing development to the south of the estate and the development of c.255,000 sq ft of industrial space to the south west.

Due to the strategic location and high prominence of the unit, the site lends itself to a range of alternative uses with future potential to redevelop the site, subject to the appropriate planning consents. These include the conversion / redevelopment to a restaurant, or to be split into a coffee and food outlet, self storage, or redevelopment as a trade counter scheme. The vendor has previously been approached by a drive through coffee operator.

Prime car showroom rental tones in Milton Keynes are currently established at £15.00 to £17.00 psf. Drive through/drive to restaurants are established at a significant premium to the current rental level with recent deals done between £39.00 to £45.00 psf whilst roadside coffee pods have achieved £50.00 psf for typical 1,800 sq ft to 2,200 sq ft units.

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Subject to Contract. This property summary is subject to verification and no reliance should be placed on the factual accuracy of its contents. Please refer to the Important Notice for the terms and conditions upon which the Property Summary has been provided to you. Misrepresentation Act: These particulars do not constitute a contract. Prospective occupiers must not rely upon the details herein as statements of facts or representations and must satisfy themselves as to their accuracy. March 2019.

VAT & TOGC FURTHER INFORMATION

EPC

PROPOSAL

We are instructed to seek offers in excess of £2,186,000, subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 9.00%, with purchaser’s costs of 6.60%. This price equates to a Capital Value of £218 psf.

Based on the annual fixed uplifts of 2.25% pa, the investment provides the following running yield profile:

We understand that the property is elected for VAT, and therefore it is anticipated that any transaction will be structured as a Transfer of a Going Concern (TOGC).

For further information or to arrange inspection, please contact:

Leo Zielinski T 0203 486 3468 M 07980 809031 E lzielinski@geraldeve.com

Vicky Smith T 0203 486 3476 M 07740 862511 E vsmith@geraldeve.com

Edwin Simmons T 0203 486 3611 M 07786 250449 E esimmons@geraldeve.com

Bill Bexson T 0203 588 7200 M 07831 827442 E bbexson@automotive-property.com

Eddie Highnam T 0203 588 7200 M 07733 535952 E ehighnam@automotive-property.com

Rating of D76.

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Passing Rent Reversionary Yield

October 2019 Uplift £214,830 9.20%

October 2020 Uplift £219,204 9.41%

October 2021 Uplift £224,136 9.62%

October 2022 Uplift £229,179 9.83%

October 2023 Uplift £234,336 10.06%

October 2024 Uplift £239,608 10.28%