Porsche-Dealership v8

Status: Sold

Terms: Sold

Price: £11,500,000

Yield: 6.0%

Porsche Dealership, Marsland Street, Stockport SK1 2BT

  • A rare forward commitment opportunity for a new Porsche dealership in a key territory
  • Prominently located, visible from the M60 motorway, 0.5 mile north east of Stockport town centre
  • A new c. 43,800 sq ft prime car dealership for one of the UK’s most prestigious franchises
  • Situated adjacent to a Tesco superstore, in close proximity to numerous car dealerships with excellent connectivity
  • The Porsche dealership will be let for a term of 15 years to Pendragon Sabre Ltd, with a guarantee from Pendragon Plc (D&B rated 5A1), the UK’s third largest dealer group by turnover
  • The property will be let for a term of 15 years from practical completion with a tenant’s option to extend for a further 10 years
  • 5 yearly RPI linked annually compounded rent reviews (1% collar & 3% cap)
  • An initial rent of £742,500 per annum (£16.95psf)
  • Freehold
  • Construction has recently commenced and has an anticipated completion date in February 2020

We are instructed to seek a forward commitment to purchase based on a £6,000,000 site acquisition with a balancing payment upon practical completion based on a total purchase price of £11,500,000 (Eleven Million, Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00%, assuming full purchaser’s costs of 7.71%.

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