Investor swoops for Birmingham car dealership in £1.8m deal

REAL estate advisor Savills, acting on behalf of a private investor, has acquired a car dealership close to Birmingham Airport from Custodian Capital in a deal worth £1.875m.

The deal reflects a net initial yield of 7.28%.

The 9,144 sq ft Kia Motors dealership on the main A45 Coventry Road is the brand’s only franchise in the Birmingham area and features 11 showroom spaces as well as a customer cafe and office space.

It is let to Allen Ford (UK), one of the UK’s leading franchised car dealership operators, on a lease with 4.5 years unexpired at a rent of £145,000 per annum.

Ned Jones, investment director at Savills Birmingham, said: “We are really pleased to have secured this asset on behalf of our client under strong competition from other investors.  The site is very prominent and offers a lot of potential for future alternative roadside development.”

The vendor was represented by FSP.