A company filing by the Japanese carmaker revealed the land has increased in value to £200 million ($325.7 million) while at the same time the company has lost £390 million ($635.1 million) on making cars since the plant opened in 1989.
The revaluation of the property reveals a 3,233% return on the land value compared to the IPD estimate of an average rise in industrial property values over the same period of 82%. The phenomenal growth in the value of the Honda land is attributed to heavy demand for housing and head offices in the M4 corridor west of London. But the company has ruled out a sale of the land.
Although the European car market has been depressed for a number of years, Honda has been able to increase market share in continental Europe. Production is expected to be up from 177,000 vehicles last year to 190,000 this year, of which 65%.
Even so, the company is making a loss on its European operations and property analysts believe they might be better off seeking a sale and leaseback of the plant. Although sale and leasebacks have become more common in the retail and office market, they are still a rarity in the industrial market.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
