PRIME CAR SUPERMARKET INVESTMENT - REVISED LEASE TERMS
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REVISED PRIME
LEASE
TERMS CAR SUPERMARKET
INVESTMENT
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
SUMMARY Established, prominent, purpose built modern
car supermarket.
Located 7 miles from Glasgow city centre,
which is Scotland’s largest city region by
population, with 1,838,180 people.
Let to the largest operator within the car
supermarket sector, Motorpoint Limited,
who have a D&B rating of 5A2.
Built accommodation extends to approximately
37,815 sq ft (3,513.12 sq m) on a total site area
of about 5.64 acres (2.285 hectares).
A*
Lease expiry 29th September 2035.
The current passing rent has been agreed
at a stepped rent, however, on completion the
rent will be ‘topped up’ to £350,000 per annum,
the next review is due on the 28th June 2023.
S eeking offers in the region of £4,865,810,
which reflects a net initial yield of 6.75%,
assuming purchaser’s costs of 6.56%
* Please note that the greyed-out building shown in the adjacent image (marked ‘A’)
may be demolished by the tenant during the term.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
LOCATION
The property is located within Glasgow, performing financial centres. Glasgow has The M74 Motorway provides access to
which is Scotland’s largest city region by the third most important financial centre the city at Junctions 1A and 2A and the
population with 1,838,180 people. Glasgow in the UK. It also acknowledged as one of M8 Motorway, at multiple junctions, runs
also has the largest economy in Scotland the top UK cities for retailing. through the centre of the city. The M77
and is at the hub of the metropolitan The city is situated some 46 miles west of and the M80 Motorways also provide
area of West Central Scotland. Edinburgh, 26 miles south-west of Stirling important communications. In terms of
The Global Financial Centres Index and 12 miles west of Paisley. arterial routes, the southern area of the
(Sep 2018) ranked the city in the Top 50 city is served by the A74 and connects
Glasgow is a very accessible city and
of the world’s best performing financial directly with the A8.
benefits from a number of Motorway
centres and in the Top 15 of Europe’s best connections and arterial routes.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
The property occupies a highly prominent The property is located within a mixed
SITUATION position fronting Hamilton Road and is
situated less than 500 metres from the
A74 and is in close proximity to the M74
commercial area, with a number of motor
retailing occupiers within the immediate
vicinity, including an Arnold Clark Vauxhall
at Junction 3. The premises are situated dealership, situated directly opposite,
approximately 8 miles south-east of and adjacent are Toyota and Peugeot
Glasgow city centre. dealerships, again both operated by Arnold
Clark. To the rear of the subject premises is
a Wickes and The Range retail warehouse.
< Please note that the greyed-out building shown in this image (marked ‘A’)
may be demolished by the tenant during the term.
A*
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
DESCRIPTION
The property comprises a modern
purpose built car supermarket facility,
originally constructed in 2002.
The main building provides for a showroom
and office accommodation with an
interconnecting covered walkway, which
leads to a substantial covered sales display
area, providing space for over 150 vehicles.
The main facility is constructed around
a steel portal frame with a large triangular
atrium window situated within the middle
of the roof, directly above the reception
area. The external elevations are finished
with a combination of steel profile
cladding and glazing to the showroom
and reception areas.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
Internally, the property has been finished to a high
standard and has been recently refurbished. The
reception area is finished with bespoke feature
fixtures and fittings and includes a customer
café, extensive waiting area and a large number
of sales desks.
Externally, the property is finished with metal
fencing to most of the boundaries. The majority
of the surfacing is finished with tarmacadam and
delineated spaces relative to the parking to the
front of the property.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
ACCOMMODATION
AREA USE SQ M SQ FT PARKING SPACES
SITE AREA
The site area extends to approximately
Ground Showroom & offices 993.8 10,697 Display 150 5.64 acres (2.285 hectares) and, in total,
Covered display 2,382.38 25,644 Storage 228 excluding the covered display area, there
is parking for over 630 vehicles on site.
Workshop 1 281.22 3,027 Workshop 52
Valet* 89.96 968 Side of showroom 24 RATEABLE VALUE
Workshop 2* 136.94 1,474 Rear of showroom 77 The Scottish Assessors have rated the
property as follows:
Ancillary* 47.99 517 Customer 79
Description Showroom
TOTAL 3,932.29 42,327 TOTAL 630 Rateable Value £207,000
Please note that the areas marked with * may
be demolished by the tenant during the term.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
TENURE AND TENANCY
TENURE
The property is held under Title Number LAN99989.
TENANCY
The property is let on a Full Repairing and Insuring basis to Motorpoint Limited.
A* The expiry of the lease is 29th September 2035. The current passing rent has
been agreed on a stepped basis , as below, although the rent will be topped
up on completion based off a rent of £350,000 pax.
The rent review basis is Open Market Rental upward only every 5 years.
The next review is due on the 28th June 2023.
DATE RENT
28th June 2018 – 27th June 2019 £342,000
28th June 2019 – 27th June 2020 £344,000
28th June 2020 – 27th June 2021 £346,000
28th June 2021 – 27th June 2022 £348,000
28th June 2022 – 27th June 2023 £350,000
* Please note that the greyed-out building shown in the above image (marked ‘A’)
may be demolished by the tenant during the term.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
COVENANT
COVENANT ANTI-MONEY LAUNDERING
Motorpoint Limited, historically known as Motorpoint of Derby limited, has been In accordance with the Money Laundering,
established since 1998. The property originally started with one facility in Derby Terrorist Financing and Transfer of Funds
and over the last 22 years the company has opened 13 sites, with the most recent (Information on the Payer) Regulations 2017,
opening of Swansea in January of this year. the Purchaser will be required to comply with
Motorpoint Limited has a Dun and Bradstreet rating of 5A2, a lower than average our Anti-Money Laundering policy. Further
risk of business failure and has reported the following account figures: details are available upon request.
31 MARCH 31 MARCH 31 MARCH
2019 2018 2017
(£000) (£000) (£000)
Sales Turnover £1,058,700 £991,200 £822,000
Gross Profit (loss) £79,900 £21,200 £22,800
before taxes
Tangible Net Worth £54,100 £35,700 £18,200
Net Current Assets £46,000 £31,400 £23,300
(Liabilities)
Motorpoint Limited are also ranked in 1st position in the Motor Trader Top 50
Non-franchised Used Car Retailers.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QA
USED CAR MARKET
Used car sales have remained relatively consistent over the As a consequence of increasing demand, a number of operators
last 10 years, with a slight dip between 2009 – 2013 and picking have continued to expand and a summary of the larger operators
up considerably from 2014, with a record high in 2016. 2017 is as follows:
and 2018 saw slight decreases. The used car figures for 2019
COMPANY TURNOVER NUMBER
finished at 7,935,105, which is only a 0.1% decrease in comparison NAME (£000’S) OF OUTLETS
to the 2018 figures. Therefore, used car sales have remained
1. Motorpoint £1,058,700 12
particularly stable.
2. Car Shop (Sytner) £664,970 9
USED CAR SALES
3. Car Giant £475,827 1
9,000,000
8,000,000
4. Available Car £359,599 4
7,000,000
6,000,000 5. The Trade Centre Group £259,000 5
5,000,000
Source: Motor Trader | Top 50 Independent Dealers
4,000,000
3,000,000
2,000,000
1,000,000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QACOMPARABLES
PRICE/
RENT NET INITIAL
PROPERTY TENANT SIZE PER ANNUM YIELD DATE COVENANT LEASE TERMS
Motor Park, Pendragon Property 105,139 sq ft (9,768 sq m) £929,610 £14,200,000 / June 2018 5A1 11.3 years unexpired,
Hull Holdings Ltd 11.24 acres 6.85% annual fixed 3% reviews.
Motorpoint, Motorpoint Limited 68,002 sq ft (6,318 sq m) £500,000 £8,000,000 / November 2017 4A2 20 years from June 2017.
Birmingham 5.59 acres 5.86% (now 5A1)
Motorpoint, Motorpoint Limited 53,133 sq ft (4,936 sq m) £392,500 £5,700,000 / July 2017 4A2 20 years from June 2017.
Burnley 8.66 acres 6.46% (now 5A1)
Motorpoint, Motorpoint Limited 36,595 sq ft (3,399 sq m) £350,000 £5,755,000 / December 2016 4A2 15 years.
Oldbury 5.33 acres 5.75% (now 5A1)
Carbase, Brent Cars Ltd 26,882 sq ft (2,497 sq m) £299,950 £4,475,000 / April 2016 2A3 20 years from September 2015.
Bristol 4.42 acres 6.30%
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QAFURTHER For further information, please contact
Colliers International or Nigel Griffiths and Company:
INFORMATION NIGEL GRIFFITHS
0115 979 2222
ENVIRONMENTALS ndgriffithsuk@yahoo.co.uk
Prospective parties will need to undertake their own
investigations to satisfy themselves on environmental issues. JOHN ROBERTS
LEGAL COSTS 0121 265 7553
Each party is to be responsible for its own legal and professional john.roberts@colliers.com
fees in connection with this transaction.
VAT
The property is elected for VAT. It is intended the sale will
be undertaken as a TOGC.
EPC RATING: D-54 BUILDING ENERGY PERFORMANCE RATING
A copy can be made
available on request.
PROPOSAL
We are instructed to seek offers in the region of £4,865,810
(Four Million, Eight Hundred, Sixty-Five, Thousand and Eight MISREPRESENTATION ACT:
Hundred and Ten Pounds), subject to contract and exclusive Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees
and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party
of VAT. A purchase at this level would reflect a net initial yield 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
of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this
of 6.75%, based off the ‘topped up’ rent of £350,000 per annum, property. October 2020.
assuming purchasers’ costs of 6.56%. Colliers International is the licensed trading name of Colliers International Capital Markets UK LLP which is a limited liability partnership registered
in England and Wales with registered number OC392075. Our registered office is at 50 George Street, London W1U 7GA.
MOTORPOINT GLASGOW | 60 HAMILTON ROAD | MOUNT VERNON | GLASGOW | G32 9QAYou can also read
