Convenience Store and PFS Investment Let to 5A1 Covenant on Long Unbroken Lease

Dawlish Road, Exeter, Devon, EX6 8AA

Property Type Investment
Availability For Sale
Size 2,036 sq ft
Freehold Price £1,492,000

Well located convenience store and BP branded petrol filling station


The service station is located in Exminster approximately 3 miles south of Exeter city centre close to Matford. The City of Exeter is a major regional centre for the south-west peninsula and has a resident population of some 94,000. The city is located immediately adjacent to the M5 Motorway and has its own airport.

Key Points

  • Let for 20 years no breaks to WS Retail Limited with a guarantee from Palmer & Harvey McLane Ltd
  • Fixed uplifts at 2.5% per annum payable 5 yearly
  • Passing rent £95,000 per annum
  • Purchase price: £1,492,000
  • Net initial yield of 6% and a reversionary yield at year 5 to 6.78%

The site area is of a broadly regular shape extending to some 0.578 acres fronting the A379 which connects to the A38 and junction 31 of the M5 motorway.

The convenience store forms a rectangular shaped retail unit on ground floor with storage to the rear of the unit. The tenant, Central Stores, has recently rebranded to their standard corporate specification.  The unit is predominantly single storey building under a flat roof with a small first floor office. The fuel forecourt is protected by a steel-framed, illuminated canopy.

In addition to the convenience store there is also a generous area for car parking.

Convenience Store

2,306 sq ft 188 sq m




A phase II environmental report is available upon request.  Under the terms of the lease WS Retail Ltd and Palmer Harvey McLane Limited are both fully responsible for the environmental status of site.


The entire property is let to WS Retail Limited (trading as Central Convenience Stores) with a guarantee from Palmer Harvey & McLane Limited for a term of 20 years from 20th June 2016 on FRI terms and subject to 5 yearly upward only rent reviews with fixed uplifts at 2.5% per annum compounded throughout. The commencing rental is £95,000 per annum.


Year Rent Reversionary
June 2001 £104,089 pa 6.78%
June 2026 £117,767 pa 7.68%
June 2031 £133,242 pa 8.69%


We understand from our vendor client that the convenience store business currently has sales of £18,000 per week, with a fuel throughput of 2.7 million litres per annum. The new tenant Central Stores are forecasting an additional £7,000 per week from the convenience store by offering a more comprehensive range of products and 3 million litres pa for the fuel.

Market Conditions

There has been considerable activity in the forecourt sector over the last 3 years, with occupier demand intensifying, as well as an influx of private equity investment, which has had a positive influence on values.  The forecourt investment market has also witnessed yield compression driven by the attraction of long term leases, guaranteed rental growth and 5A1 tenant covenants.


This property is elected for VAT. It is assumed the purchase will be conducted by way of a TOGC.


We are instructed to seek offers in excess of £1,492,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 6% assuming purchasers costs at 6.1%.


WS Retail Ltd (trading as “Central Stores”) operate appx 50 stores in the South West, they have been successfully expanding their business and are now showing a profit.  P&H guarantee the income for the whole 20 year term.

For the year ending April 2015:

Turnover - £36.6m
Gross Profit - £6.7m
Total Assets - £157,000

Palmer & Harvey McLane Limited (P&H) act as full guarantor throughout the lease term and own 100% of WS Retail Ltd who are the operating tenant. It is the UK’s number 1 delivered wholesaler, with an annual turnover of more than £4 billion, serving multiple, convenience, forecourt and CTN retail outlets.  

For the year ending April 2014:

Turnover - £4.175 billion
Gross profit - £161m
Net assets - £107m
Shareholders’ funds - £127m

Palmer & Harvey McLane Limited has 3,400 employees and Dun & Bradstreet rating of 5A1 representing a minimum risk  of business failure. Further information is available at

Savoy Stewart - London Commercial Property Experts

Savoy Stewart is a commercial property agent and commercial property surveyor located on Oxford Street, in the heart of London. We provide comprehensive services that meet specific commercial property needs all around London and the surrounding areas.

Why choose Savoy Stewart for London commercial property?

  • We're the first choice for many new to market properties due to our reputation in
    the London market.

    Experience working with household name clients such as Campari, Heineken and TomTom as well as independent clients puts us in position find the property to best suit your needs.
  • We can often negotiate better prices for our clients
    by utilising local knowledge and leveraging our established position in the London market.
  • Find the right property in the quickest possible time.
    We understand just how important your time is and we are dedicated to fulfilling your needs quickly and accurately.

We also offer a range of specialist property services including:

  • D1 Properties
    Our focus on D1 properties mainly includes properties for educational, religious and medical/dental use.
  • Retail Properties
    We work with landlords and retailers in the Greater London area to provide viable retail properties.
  • Serviced Offices
    Browse through over a 1000 serviced offices perfect for short term requirements and small businesses.

Our Services:

  • Lettings and sales
    Are you looking to sell or rent property? Or are you looking to acquire new premises? Our Letting and sales team can help with all aspects to help you with your property.
  • Investment advice
    Are you looking to identify lucrative new investment opportunities? Our investment advice team offer unbiased advice on all aspects of property investment for both UK and overseas investors.
  • Rent reviews
    Do you need help to arrange the best rental agreement for your property or business? Our rent reviews team offer impartial advice for landlords and tenants to negotiate agreements between both parties. Our chartered surveyor expertise means that we can also advise on legal issues.
  • Lease renewals
    Do you need help with the complicated lease renewal process? Our lease renewals team can help you avoid the pitfalls and traps when renewing your lease and many of our clients find this service invaluable.
  • Management
    Would you like us to manage your commercial property? We offer a competitively priced management service suited to your property. Our team work to establish a relationship between both landlord and tenant to recognise and minimise any potential difficulties as early as possible.

Savoy Stewart at a glance

If you would like further information regarding any of our services
just call us on 020 7495 3666.