Wheddon Cross, Minehead, Somerset, TA24 7DR
|Size||1,266 sq ft|
|Freehold Price||Offers in excess of £983,600|
|Rent||£65,000 per annum|
Wheddon Cross is in the heart of the National Park and is surrounded by beautiful countryside. The village has a thriving rural community and a robust tourist trade. This is the only convenience store/ supermarket and filling station serving Exmoor National Park, an area of 692 sq km (267 sq miles). It is prominently located on a busy crossroads in the heart of the park. It serves all the surrounding villages as far as Minehead (appx 9 miles away) and all the villages to the west. The famous Cutcombe Livestock Market is within 150 metres of the subject property. The property is located on the busy B3224 Summerlands connecting the village of Wheddon Cross with Cutcombe and
close to the junction of the A396. It lies 9 miles south of Minehead and 23 miles west of Taunton on the A358.
The convenience store forms a newly refurbished 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 a single storey building under a pitched profile metal clad roof together with a separate workshop unit. In addition to the convenience store there is also a generous area for car parking 13 vehicles at the rear.
|Convenience Store Sales||1,572 sq ft||146 sq m|
|Ancilliary||873 sq ft||81 sq m|
|Workshop||1,266 sq ft||118 sq m|
|Site Area 0.675 Acres||29,439 sq ft||2,735 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 5th December 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 £65,000 per annum.
|December 2021||£73,541 pa||7%|
|December 2026||£83,205 pa||8%|
|December 2031||£94,139 pa||9%|
We understand from our vendor client that the convenience store business currently has sales of £25,000 per week, with a fuel throughput of 1.8 million litres per annum. The new tenant Central Stores are forecasting £28,000 per week from the convenience store by offering a more comprehensive range of products and 2 million litres pa for the fuel.
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 not elected for VAT.
Available on request.
We are instructed to seek offers in excess of £983,600 (subject to contract) for the freehold interest, which reflects a net initial yield of 6.25% assuming purchasers costs at 5.73%.
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 2016:
Turnover - £54.98m
Gross Profit - £11.63m
Net Assets - £500,000
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 2016:
Turnover - £4.388 billion
Gross profit - £173m
Net worth - £115m
Shareholders’ funds - £129m
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 www.palmerharvey.co.uk.
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