McColl's Convenience Store - Bath

6 Argyle Street, Bath, BA2 4BA

Picture1.jpg
Property Type Investment
Availability For Sale
Size 976 sq ft
Freehold Price Offers in excess of £755,000

Well located convenience store

Location

The city of Bath is a World Heritage Site and attracts over 3.8 million day visitors each year. Bath is located 97 miles west of London and 12 miles east of Bristol on the A36 and A4 trunk roads and junction 18 of the M4 motorway is within 10 miles. The city has a good train service to both London and Bristol.

This building is situated on the north side of Argyle Street, close to the famous Pulteney Bridge over the River Avon. The property occupies a prominent corner position and other occupiers close by include Bang & Olufsen, The Bath Rugby Shop, Phase Eight, Oxfam and Dorothy House Hospice. There are a wide range of speciality retailers and cafés on Pulteney Bridge, which leads to and from the city centre.

Key Points

  • Well located convenience store in an historic and attractive town centre
  • Located in highly desirable world heritage city
  • New 16.5 year lease with no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts at 2% pa payable 5 yearly
  • Passing rent £40,000 per annum
  • Offers in excess of £755,000
  • Net initial yield of 5.03% and a reversionary yield in November 2018 to 5.18%

This attractive period property comprises a four storey building of traditional construction with a retail unit on ground floor, ancillary accommodation in the basement and residential accommodation on the upper floors.  The residential accommodation, which consists of two flats, have been sold off on a long lease.

Ground Floor
(Convenience Store)
586 sq ft 54 sq m
Ancillary 390 sq ft 36 sq m
Total NIA 976 sq ft 90 sq m
Upper Floors
1st, 2nd and Attic Floors
Two Flats  

Tenure

Freehold subject to the upper floors being sold off on 199 years from 01.01.2006 at peppercorn with a reversion in 2204.

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from the 7th November 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 £40,000 per annum.

Rent

Year Rent Reversionary Yield
November 2018 £41.208 pa 5.18%
November 2023 £45,497 pa 5.72%
November 2028 £50,232 pa 6.31%

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 29th November 2015 reported a turnover of £489.336 million, a pre tax profit of £22.229 million and shareholder’s funds of £134.740 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.

VAT

The property is elected for VAT and therefore VAT will be payable on the purchase price. However it is anticipated that the sale will be treated as Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers in excess of £755,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 5.03% assuming purchasers costs at 5.42%.

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.