Savills, on behalf of MVJ Capital, has completed the freehold sale of 232 Penarth Road in Cardiff to LXi REIT for £4.1 million. The building is let to Cazoo Car Dealership. The sale price represents a net initial yield of 5.57%.
The property comprises of a purpose-built car dealership erected in 1999 providing showroom, office and servicing space spanning c.17,785 sq ft and external car parking. It sits on a site of approximately 1.61 acres (0.65 hectares) in a prominent position on the corner of Penarth and Hadfield Road.
A new 20 year lease had been signed in September 2021 with Cazoo Properties Ltd with a guarantee from Cazoo Ltd at an annual rent of £245,000.
The dealership is positioned at the heart of Cardiff’s primary motor retail location with excellent visibility and roadside frontage. The dealership is located approximately two miles South of Cardiff town centre, directly opposite a Honda dealership and next door to Toyota / Lexus dealership with other dealerships close by including Jaguar / Land Rover, Hyundai, Volvo, BMW, Mini, Mazda and Porsche.
Ross Griffin, Director in the UK Investment teams at Savills Cardiff, comments: “We are delighted to complete this extremely attractive investment opportunity which is let to a popular and profitable car dealership in the heart of Cardiff’s core car dealership area to LXi REIT.”
MVJ Capital, commented: “Negotiation of the new lease with this growing tenant and covenant strength and extensive media coverage made it an appropriate time to dispose of the asset. We are pleased with the result and would like to thank our team at Savills and Le Gros as well as LXi REIT who were a pleasure to work with in getting the deal over the line.”
Claudia Le Gros, Managing Partners at Le Gros Solicitors, adds: “We were delighted to act once again for our retained client MVJ Capital in relation to the disposal of this investment property having previously advised on its acquisition and the new lease with Cazoo Limited. Bethan Sadler, Partner and myself led the team including Daniel Perry on all aspects and we are delighted with the result achieved for our client.”
Savills and Le Gros Solicitors Limited advised MVJ Capital. Powell Lloyd and Gowling WLG advised LXi REIT.