A RARE OPPORTUNITY IN OXFORD TO ACQUIRE A WELL-LET INVESTMENT UNDERPINNED BY LIFE SCIENCE REDEVELOPMENT POTENTIAL
VOLVO & MG OXFORD
The property occupies a highly visible site fronting Cumnor Hill, approximately 2.8 miles (4.5 km) to the west of Oxford city centre. Cumnor Hill connects the suburb of Botley the north east to the A420 and Cumnor in the south west. Cumnor Hill is a mixed high value residential and commercial area. Surrounding uses include Chawley Park, a modern office park housing occupiers including Winckworth Sherwood, James & Cowper and Helios. There is also a nearby modern care home and high grade residential development.
The property comprises two purpose-built dealership buildings which have recently been refitted and reconfigured in accordance with the manufacturer’s latest corporate requirements and franchise standards. The properties are of steel frame construction with full height glazing to the showrooms with clad rear elevations and workshop under a part pitched part flat roof. The accommodation is arranged over ground and first floor levels with external parking comprising a total GIA of approximately 27,372 sq ft (2,543 sq m). The Volvo showroom is fitted to a high Scandinavian specification throughout providing 9 showroom display spaces with a reception desk area and customer waiting area to the centre, fitted with suspended ceilings, extensive lighting and overhead ventilation system. There are offices and ancillary areas to the rear of the showroom. Parts is accessed from the side of the building and the workshop, accessed at the rear of building, is configured to provide a total of 5 service bays. The first floor comprises offices, staff room, storage and ancillary. The MG showroom provides 4 showroom display spaces with offices, a kitchenette, ancillary, storage and parts. The workshop area is configured to provide a total of 4 service bays. The first floor comprises parts and storage. Externally, there is a detached valet unit and further workshop space and a total of 108 car parking spaces including new and used car display bays, customer parking and storage spaces.
The property is let to Waylands Automotive Limited on a full repairing and insuring lease for a term of 15 years expiring 31st December 2033, at a passing rent of £287,500 per annum (£9.41 psf). There is a reversionary lease which takes the unexpired term to approximately 16.25 years, expiring 31st December 2038. The rent is reviewed to the greater of open market rent or linked to the Retail Price Index with a collar and cap of 1% and 3% per annum. The next review is in December 2023, based on a gross internal floor area of 30,539 sq ft.
We are of the opinion that the ERV is £380,000 per annum, equating to £12.44 psf.
We are instructed to seek offers in excess of £5,385,000 (Five Million, Three Hundred and Eighty Five Thousand Pounds) for the freehold, subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 5%, rising to 6.6% based on our ERV in December 2023, assuming purchaser’s costs of 6.61%.
The property has been elected for VAT purposes and it is anticipated that the transaction will be treated as a Transfer of Going Concern.
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CBRE Limited on its behalf and as agent for the Vendors or Lessors of this property, give notice that:
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