Franck-Steier Price has recently completed the acquisition of two prime car dealership investments, located on Battlefield Enterprise Park, Shrewsbury and Hurricane Close, Stafford on behalf of Custodian REIT plc.
The properties comprise two modern Audi car dealerships extending to 20,231 sq.ft on a site of 2.04 acres at Shrewsbury and 22,720 sq.ft on a site of 2.12 acres at Stafford. The properties have both been recently refurbished to Audi’s latest corporate specifications.
The properties are let to Volkswagen Group United Kingdom Ltd for a further 6.5 years. The leases are subject to 5 yearly open market reviews and the current total rent is £502,996 per annum (£11.71 per sq.ft).
The tenant has sublet the properties to Lancaster Plc (Shrewsbury) and Swansway Garages (Stafford). The leases are subject to 5 yearly reviews to uncapped RPI and the current total rent is £575,002 per annum (£13.39 per sq.ft).
The properties were acquired from Aberdeen Standard, represented by APC, for a combined price of £7,375,000 which reflects a net initial yield of 6.39%.