McColl's Buntingford, Hertfordshire, SG9 9BL

Investment For Sale in Buntingford

McColl's Convenience Store & Post Office

  • 2,151 sq ft Net Internal Area
    ( 200 sq m )
  • Price: £478,000
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Exterior1Exterior2

Key Points

  • Well located convenience store in attractive Hertfordshire town
  • Recently extensively refurbished and re-branded
  • Let for 16.5 years no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts at 2% pa payable 5 yearly
  • Passing rent £30,000 per annum
  • Net initial yield of 6% with a reversionary yield in November 2017 to 6.18%

Description

The property comprises a two storey brick building of traditional construction under a pitched, slate roof. The retail shop is arranged over the ground floor with ancillary accommodation towards the rear of the property. The upper floors are residential accommodation but these are owned by the freeholder and, as such, do not form part of the beneficial interest. The property has recently been extensively refurbished and re-branded to McColl’s standard format.

Ground Floor Sales 1,648 sq ft 153.1 sq m
Ancillary 503 sq ft 46.7 sq m
Total NIA 2,151 sq ft 199.8 sq m

Tenure

Freehold

Tenancy

The ground floor is let to Martin McColl Limited for a term of 16.5 years from the 9th May 2016 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The first review is in 18 months and thereafter 5 yearly. The commencing rental is £30,000 per annum.

Rent

Year Rent

Reversionary Yield

9th November 2017 £30,904 pa 6.18%
9th November 2022 £34,121 pa 6.82%
9th November 2027 £37,672 pa 7.53%

Covenant

McColl’s trade from over 1,300 stores throughout the UK with approximately three quarters of those being convenience stores and the remainder trading as newsagents. Their brands include McColl’s, Martin’s and R. S. McColl. For the year ending 30th November 2014 reported a turnover of £462.850 million, a pre tax profit of £27.947 million and shareholder’s funds of £117.307 million.

The combined group has a turnover in excess of £1bn. It employs nearly 20,000 full and part-tine staff and is visited by over 4.5 million customers every week. The company floated on the London Stock Exchange in 2014. Further information can be found at http://www.mccolls.co.uk/investor.

Proposal

We are instructed to seek offers in excess of £478,000 (subject to contract) for the long leasehold interest, which reflects a net initial yield of 6% assuming purchasers costs at 4.60%.

Business Rates

Available on enquiry

Service Charge

Available on enquiry

Buntingford is an attractive Hertfordshire town, located 10 miles north of Ware, 7 miles east of Stevenage and 8 miles west of Bishop's Stortford. The A10 to the west of Buntingford provides access to the M11 (Junction 11) and the A507 leads to Junction 10 of the A1(M). The property is situated on Baldock Road close to the junction with Roman Road and within 50 metres of the town centre. Other occupiers include Barclays Bank, Lloyds Pharmacy and numerous local traders.