Automotive property investments reach record highs

Property investments made by the automotive industry in the UK have hit record highs, according to new research.

The Knight Frank Automotive Capital Markets Report states that by the end of 2015, the total value of the sector's property transactions will reach £650 million. Furthermore, automotive capital values have comfortably outperformed the wider market, rising by over 50 per cent since 2010.

With such large amounts of money being invested in property, it is important that automotive businesses protect these assets. For car dealers and garages, a combined motor trade insurance policy will not only include cover for the business premises but it will also cover the value of the goods stored inside.

Among some of the largest investments noted in the Knight Frank report was the £230.5 million spent on the acquisition of 73 dealership investments let to Pendragon by WP Carey. Indeed, the research claims that car dealerships let to major dealer covenants are forecast to be the star performer in 2016, having shown capital growth of 90 per cent since 2010.

Adam Chapman, head of automotive, Knight Frank, commented: “2015 has been an exceptional year for the automotive sector, and there are no signs of this slowing into 2016.

“Given the forecast growth in rental and capital values, automotive property continues to offer genuine value against other ‘alternative’ sectors. We expect annual transaction volumes to surpass £1 billion by 2020.”