THE FREEHOLD of a prime Reading car dealership has been bought for £6.2m.
The RO Group says its decision to purchase the Reading Honda site on Rose Kiln Lane is a strategic investment, and has a net initial yield of 9.33%.
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.
The site is let to Honda Motor Europe for a term of 25 years that expires in 2033, with a break clause in October 2028.
The property is located in a prominent location, lying within a hub for cars that includes Ford, Kia, Hyundai, Volkswagen, and Suzuki, along with the Reading Link Retail Park.
Nick Cashmore, Investment Director at RO Real Estate, said: “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.”
The firm was advised by Savills for this acquisition from the pension scheme USS, which was advised by Knight Frank.
Bill Bexson, head of the automotive team at Savills, said: “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.”
