Big Motoring World is gearing up for the £14m sale and leaseback of a huge Mational Car Preparation Centre in Peterborough. The property is to be let to Big Motoring World parent Bapchild Motoring World on a 20-year lease at £1m per annum.
A sale and leaseback deal allows Bapchild to release tied up capital and give a fresh injection of cash into the business.
Big Motoring World has grown over the past 18 months with the purchase of from CarShop, two from Available Cars and the opening of a new operation in Wimbledon. These acqisitions are expected to boost overall group turnover to £1bn.
Profitability has been hit. For the year ending 31 December 2023 it reported a turnover of £697.44m (£529.68m to Dec 2022) and a pre-tax profit of £2.247million (£10.953m to Dec 2022
In the investment brochure produced with HSM Chartered Surveyors, it said: “Falling profitability in the motor retail sector was a common theme for most dealer groups during 2023, primarily resulting from a constrained supply and pricing correction in the used car market following unprecedented price increases during the COVID pandemic.”
Big Motoring World undertook a £1.75m refurbishment of the unit in 2020 in advance of their occupation.
The warehouse has 112 workshop ramps, including 10 MOT bays, a parts department and paint ovens for bodywork repairs.
Separately, Bapchild is currently embroiled in a High Court case with founder and ex-director Peter Waddel.
