McColl's Convenience Store - Halifax

5-9 Kershaw Crescent, Luddendenfoot, Halifax, HX2 6NR

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Property Type Investment
Availability For Sale
Size 3,094 sq ft
Freehold Price Offers in excess of £514,000
Energy Performance Rating This property has been graded as 66 C

McColl's Convenience Store

Location

Halifax is one of West Yorkshire's principal commercial centres, with a population in excess of 91,000. The town is located some 7.5 miles south-west of Bradford and 7 miles north-west of Huddersfield. Road communications are good, with the M62 Motorway (Junction 24) accessible to the south. Halifax Rail Station provides frequent services to Leeds and Manchester. The property is situated in Luddendenfoot a residential suburb 4 miles west of Halifax town centre. The premises are situated in a highly densely populated residential housing area.

Key Points

  • Well located convenience store in a highly densely populated residential area
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts at 2% pa
  • Passing rent £35,000 per annum
  • Offers in excess of £514,000
  • Net initial yield of 6.5% with a reversionary yield in November 2018 to 6.7%

The property is part of a two shop parade and comprises a two storey building of traditional construction under a pitched, tiled roof with a single storey flat roof over the extension to the front of the unit. The retail shop is arranged over ground floor retail with ancillary accommodation to the rear. There is ample car parking available on the street adjacent to the unit.

Ground Floor Sales 2,348 sq ft 218 sq m
Ancillary 746 sq ft 69 sq m
Total NIA 3,094 sq ft 287 sq m

Tenure

999 Years Long Leasehold (Virtual Freehold)

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from the 25th May 2017 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £35,000 per annum.

Rent

Year Rent

Reversionary
Yield

25th November 2018 £36,055 pa 6.7%
25th November 2023 £39,808 pa 7.39%
25th November 2028 £43,951 pa 8.16%

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 27th November 2016 reported a turnover of £518.736 million, a pre tax profit of £25.631 million and shareholder’s funds of £160.391 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 £514,000 (subject to contract) for the long leasehold interest, which reflects a net initial yield of 6.5% assuming purchasers costs at 4.76%.

 

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