Allsop launches three Audi showrooms to market for c. £23m

Allsop, a leading UK property consultancy, has launched to market three Audi showrooms, with offers sought in excess of £22.95 million for the entire portfolio, as the firm continues to expand its alternative commercial property investment offering.  

Allsop is marketing the three car showrooms in Bury St Edmunds, Liverpool and Nottingham – which are individually being marketed at £5.48 million, £8.15 million, and £9.32 million, respectively – on behalf of its family office client. The properties benefit from long leases with terms certain until 2033 let to Volkswagen Group United Kingdom and are likely to attract investors seeking secure long income assets.

Smallest of the three assets, Bury St Edmunds Audi on Skyliner Way provides 22,345 sq ft of car showroom, workshop space and ancillary accommodation on a site of approximately 0.97 hectares is in a prominent position adjacent to Suffolk Park, a new two million sq ft development, it is within a 30-minute drive to the national motorway system (M11).

Liverpool Audi, on Sandhills Lane, consists of a 28,655 sq ft car showroom plus additional working space on a site of 0.74 hectares. It is located in a strategically important position in Liverpool, with easy access to the M62, M58 and M57 motorways and Liverpool Lime Street rail station. It is let to Volkswagen until 2058 (with a tenant break in 2033) and is also a freehold investment.

Nottingham Audi is a long leasehold investment let to Volkswagen until 2058 (with a tenant break in 2033), providing a 30,242 sq ft car showroom, workshop and ancillary accommodation on a one-hectare site. Car dealerships in the vicinity include Aston Martin, Porsche, Ford, Nissan, Ferrari, BMW, and Arnold Clark.

Volkswagen is a leading car brand in the UK with the most car sales in the UK and a market share of 22.1% of the passenger car market in the UK. As a brand with a particularly strong focus on the electric vehicle and hybrid market, which is expected to grow by 29% year-on-year in 2023 according to Automotive World, the showrooms benefit from an attractive long-let occupier.

The flight to long income has created a new marketplace for alternative investments to thrive. Asset classes that offer long leases such as roadside, education and hotels have become increasingly popular with investors at all levels, ranging from private investors through to institutional funds.

Liam Stray, senior associate at Allsop, said: “These prime automotive investments benefit from strong locations and excellent covenants. Either sold separately or to a buyer keen to acquire them as a portfolio, they will be deeply attractive to purchasers keen to secure assets that provide long and stable income streams. We’re seeing growing interest among investors for alternative commercial investments, ranging from car showrooms, nurseries, SEN schools to hotels, with long-dated income proving immensely attractive in challenging economic conditions. Amid the continued expansion of our national commercial investments team, alternative asset classes will be a keen focus for growth.”