Prominently located modern car showroom investment

INVESTMENT SUMMARY

Prominently located car showroom investment in Durham

Durham has an immediate population in excess of 50,000 and a county wide population in excess of 520,000

Highly visible location immediately opposite Durham City Retail Park

Nearby occupiers include B&Q, Currys PC World, B&M, Argos, Boots, SCS, KFC, and Pizza Hut

The local area forms a motor retail cluster, including Toyota and Renault, with Cooper BMW, Seat, Nissan, Mazda, and Skoda dealerships nearby

The excellent location may provide future opportunity for redevelopment, particularly for roadside uses

Comprising a 10,806 sq ft showroom with 117 car parking spaces on a site of approximately 1 acre

The property is entirely let to Sherwoods Motor Group Limited (t/a Peugeot) at the passing rent of £140,000 per annum (only £12.95 psf) subject to 5 yearly upward only rent reviews to market rent.

The next rent review is in July 2025 providing an early opportunity for rental growth

According to CreditSafe (Jan-25) Sherwoods Motor Group Limited have a credit risk score of 78 – Very Low Risk and an International Risk Score of A – Very Low Risk.

We are instructed to seek offers in excess of £2,100,000 (Two Million, One Hundred Thousand Pounds) reflecting a net initial yield of 6.27% and assuming standard purchasers costs of 6.30%

DESCRIPTION

The property is a purpose-built car showroom designed to reflect the Peugeot brand. It features a striking double-height, fully glazed showroom, complemented by a rear parts department and vehicle workshop. The property benefits from substantial frontage onto Alma Place, a key arterial route connecting Durham city centre to the A1(M).

Modern office accommodation is provided on both the ground and first floors. The one-acre (0.4-hectare) site, accessed directly from Alma Place, offers ample display space for new and used vehicles, along with generous customer and staff parking (estimated at 117 spaces).

TENANCY INFORMATION

The property is let on a 20 year FRI lease from 9 July 2010 and expiring on 8 July 2030 (circa 5.5 years unexpired) at a passing rent of £140,000 per annum (only £12.95 psf) subject to 5 yearly upward only rent reviews to market rent.

The next rent review is 9 July 2025. The tenant did not exercise their option to terminate the lease on 9 July 2025 (subject to providing 6 months' notice) demonstrating their ongoing

commitment to the building.

The lease was assigned to Sherwoods Motor Group Limited in 2018.

The motor trade investment sector offers several attractive characteristics for investors. These include substantial sites in prime commercial locations, often presenting opportunities for alternative uses; low building density; tenants with robust financial standing and reliable income streams; and frequently, potential for future redevelopment.

SITUATION

This prominent location in Durham, along a main arterial route into Durham City Centre, immediately opposite Durham City Retail Park; incorporating occupiers such as B&M, Pure Gym, Currys, McDonalds, KFC with other presents a number of future redevelopment opportunities, particularly for roadside uses.