The property is located in Chelmsford’s prime car showroom location to the north of the city close to the A12. The property comprises 16,350 sq.ft of showroom, workshop and valet bays on a site of 1.94 acres. The tenant has recently significantly invested in the property and has been in occupation since 2003. Let to Lancaster plc on a 20 year FRI lease expiring January 2030. 5 yearly fixed uplifts to 2.25% per annum compounded. Rent £343,360 per annum (rent to be topped up to the January 2020 review). Offers sought in excess of £5,150,000 which reflects a net initial yield of 6.25% and a reversionary yield of 6.60% in 2025.
Franck Steier Price has recently completed the sale of a well let car dealership investment in Chelmsford on behalf of OLIM.
The subject property is a modern car dealership located to the north east of Chelmsford city centre just off the A12. The immediate area is a mix of retail, car showrooms and business parks. Nearby occupiers include Sainsburys, McDonalds, Premier Inn, BMW/Mini, Honda & Toyota.
The property occupies a prominent corner site and comprises a 16,350 sqft car showroom with workshop, the workshop area has been converted into an additional sales area. There are 133 car spaces on the site which totals 1.94 acres.
The dealership is let to Lancaster plc on a 20 year term from January 2010. There are 5 yearly rent reviews with fixed 2.25% per annum compounded increases. The passing rent was £307,208 per annum with an increase due in January 2020 to £343,360 per annum. The vendor topped up the rent to the 2020 rental level.
The property was sold to a private overseas investor for £5,025,000 which reflected an initial yield of 6.41%.