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Strong investor appetite for automotive property

Small dealerships which are struggling financially continue to drive consolidation in the automotive property sector, according to Colliers International.

David Chittenden, Colliers head of automotive and roadside, said: “Perceived undervaluation of business and property values is driving mergers and acquisition activity and investor appetite remains strong with yields ranging from sub 6% to 8% plus.

“More than £100 million of assets leased to Pendragon have been sold recently.”

Chittenden believes that while retail sales have been slow, trading is stabilising across networks in the UK .

He said: “Financial institutions remain very interested in automotive, especially in manufacturer covenanted facilities.”

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