Arriva House, 15 Blackwater Way

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Summary

Car Showroom & Premises Ground Lease Investment

Description

The premises comprise a detached two storey, self contained building in use as a fully fitted car showroom on the ground floor as a Skoda dealership. The first floor is being used as ancillary storage with its own separate access. In 2012, the tenant extended the car showroom with Landlord’s permission under Licence for Alteration. Adjacent occupiers include Ford Dealership, Charters Peugeot, Network Q, Vauxhall Dealership, Mill Lane Renault Dealership and ATS Euromasters. There is on site car parking for approximately 20 vehicles and a further 14 cars displayed fronting Ash Road.

Location

The building has significant frontage onto Ash Road, although the principal access to the building is from Blackwater Way. Aldershot is a popular Hampshire commuter town situated approximately 41 miles (66 kms) south west of London, 8 miles (13 kms) south of Camberley and 11 miles (18 kms) west of Guildford. Aldershot benefits from excellent road communications being located at the junction of the A331 and the A31 which links the town to the M3 in the north (5.8 miles) and the M25 to the east (17.5 Rail communications are excellent with Aldershot benefitting from regular services to London Waterloo with a fastest journey time of 47 minutes. London Heathrow airport and London Gatwick airport are located 21 miles to the north east and 26 miles to the east respectively.

Proposal

We are instructed to seek offers in excess of £600,000 for the long leasehold interest, subject to contract and exclusive of VAT. This price reflects a net initial yield of 6.54 % and 5.75% of purchase costs.

VAT

The property is elected for VAT and it is envisaged that the property will be sold as a transfer of going concern.

Tenure

We are offering the long leasehold interest in the property which was originally granted for a term of 99 years from the 11 September 1967 with rent reviews every 21 years. The current rent is £13,500 per annum with the next review in 2032. The Head Lessor is Rushmoor Borough Council. The rent review is based on a cleared piece of land, free of any buildings erected thereon and on an assumed 99 year lease.

Tenants Information

The property is let on a full repairing and insuring lease to Winchester Motor Company (Company Reg No. 01033289) on a 10 year lease expiring April 2032. The rent is £55,000 per annum exclusive. There is a fixed rent increase at the end of the 5th year linked to the retail price index.