Lookers has sold its Lookers House headquarters in Altrincham in a sale and leaseback deal believed to be worth around £5 million.
Carrick Real Estate, acting on behalf of Savills Investment Management, acquired and leased back Lookers offices in an off-market transaction reflecting a net initial yield of 6.68%, The BusinessDesk.com reported.
The new lease terms agreed on the 21,000sq-ft Etchells Road offices spans 15 years with a 10-year break.
Carrick Real Estate partner, Steve Carrick, said: “The South Manchester investment market is continuing to perform well, given the strong occupier demand and limited supply.
“Lookers PLC are an excellent business and the tenant has spent a significant amount of capital expenditure on the building. We are pleased to be able to secure this deal off-market for our clients”
Lookers bought its Lookers House headquarters, then called Aspect House, in July last year.
The freehold acquisition allowed the group to relocate from its former premises near Old Trafford.
In May this year, Lookers highlighted the “resilience and diversity” of its business model as it outperformed the market with a 4% downturn in new car revenues but growth from used cars and aftersales.
In a trading update covering the three months to March 31, the AM100 retail group reported new car registrations reduced by 12.4% to 718,489 cars but revenues from new cars decreased by 4%, a figure it described as “significantly better than the total market reduction of 12%”.
Total gross profit from new cars – 33% of gross profit for the group – reduced by 8% with a modest reduction in profit per unit, it added, commenting that the comparative period of 2017 was particularly strong due to April’s changes in VED road tax.