The property is located in a prominent location, lying within a major regional commercial hub that includes Ford, Kia, Hyundai, Volkswagen, and Suzuki, along with the Reading Link Retail Park, making it a pivotal location for automotive trade in the Home Counties.
Strategically located just off the A33, the dealership enjoys superb connectivity. Reading town centre is approximately one mile north, with excellent road links to Slough, Oxford, and central London. Reading Train Station and London Heathrow Airport are also in close proximity, further enhancing the location’s appeal.
Nick Cashmore, Investment Director at RO Real Estate, commented:
“It is exciting to start the New Year by completing this acquisition, which is particularly significant as we seek to grow the Group’s roadside portfolio in 2024. This well located asset offers us a particularly attractive running yield and future development optionality given the very low site cover. We are actively seeking new opportunities for prominent roadside sites for development across the Midlands and South.”
Bill Bexson, Head of the Automotive Team at Savills, added:
“The Honda showroom provided the RO Group with an excellent opportunity to acquire a prime well located facility. At present, there is a severe supply / demand imbalance in the wider occupational market, which we anticipate will over time offer multiple asset enhancement opportunities.”
The purchase reflected a net initial yield of 9.93%. The property is let in its entirety to Honda Motor Europe for a term of 25 years expiring in 2033, with a break clause in October 2028.
Spanning 16,400 sq. ft., the dealership features an expansive showroom, a state-of-the-art workshop, and comprehensive aftersales accommodation. With its low site coverage of 18% across 1.76 acres, the property not only provides immediate value but also holds significant potential for alternative use redevelopment.