RO Group acquires £6.2m Reading Honda showroom

The RO Group has acquired the freehold of the Marshall Reading Honda dealership for £6.2 million. 

The property is located within a regional commercial hub that includes Ford, Kia, Hyundai, Volkswagen and Suzuki along with the Reading Link Retail Park strategically located off the A33.

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 a large showroom, a state-of-the-art workshop and comprehensive aftersales facilities.