McColl's Convenience Store - Hare Runs

93 Barley Cop Lane, Hare Runs, Lancaster, LA1 2PP

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Available
Property Type Investment
Availability For Sale
Size 3,203 sq ft
Freehold Price Offers in excess of £550,000
Energy Performance Rating This property has been graded as 61 C

McColl's Convenience Store

Location

Lancaster is an attractive and prosperous university city located approximately 20 miles north of Preston. It is also an important regional shopping centre, with a substantial catchment area and benefits from excellent communications via Junction 34 of the M6 Motorway lying to the eastern side of the city. Hare Runs is an attractive suburb some 2 miles north west of the town centre on the A6 trunk road. The property is located on Barley Cop Lane in a densely populated residential area.

Key Points

  • Convenience store in the centre of this residential suburb.
  • Let for 18 years with no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts throughout at 2% pa
  • Passing rent £33,000 per annum
  • Net initial yield of 5.72% with a reversionary yield in November 2020 to 6%


The property which is detached is arranged on ground and first floor with ground floor sales and ancillary space together with first floor storage and ancillary.  The property is of traditional brick construction under a pitched and tiled roof.  There is unrestricted on street car parking.

Ground Floor Sales 1,628 sq ft 151.2 sq m
Ancilliary 489 sq ft 45.42 sq m
First Floor Storage 1,086 sq ft  100.88 sq m
Total NIA 3,203 sq ft 297.55 sq m

Tenure

Freehold.

Tenancy

The property is let to Martin McColl Limited for a term of 18 years from the 13th November 2017 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout.  The initial rent is £33,000 per annum.

Rent

Year Rent Reversionary
Yield
13th November 2020 £35,020 pa 6%
13th November 2025 £38,665 pa 6.7%
13th November 2029 £42,689 pa 7.4%

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 £25,361 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-time 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.

EPC

The property has an EPC rating of C61.

VAT

The property is elected for VAT which will be chargeable on the purchase price. It is anticipated the transaction is to be treated as a transfer of going concern (TOGC).

Proposal

We are instructed to seek offers in excess of £550,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 5.72% assuming purchasers costs at 4.89%.

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