PPH1, the property holding arm of Pendragon, has disposed of 35 of its car showrooms for more than £100m, a yield of 7%.
As part of the deal, all properties will be leased to Pendragon for unexpired terms of between 15 to 20 years, with annual increases of either 2.25%, or the lower of RPI or 2.77%.
The buyers were: OLIM, represented by Kitchen La Frenais Morgan; an Israeli private investor, represented by Savoy Stewart; Hemres, represented by Tudor Toone; a new Schroders fund, represented by Strutt & Parker; and ING (Dorset county council pension fund), represented by Hoddell Stotesbury Morgan.
Colliers International acted on behalf of Pendragon.
Adrian Clery, director, national investment at Colliers, said: “This is a significant portfolio sale for the automotive sector, and demonstrates the institutional appetite for well-let property and the resilience of the automotive investment market.”
joanna.bourke@estatesgazette.com
