McColl's Convenience Store Ingoldmells

The Chase Caravan Park, Anchor Lane, Skegness, Lincolnshire, PE25 1LZ

Exterior 1
Exterior 2
Under offer
Property Type Investment
Availability For Sale
Size 2,627 sq ft
Freehold Price £340,000
Rent £23,179 per annum

Well located convenience store

Location

The Civil Parish of Ingoldmells is a coastal village located in Lincolnshire some 3 miles north of Skegness via the A52. Lincoln is located some 45 miles to the west whilst Junction 17 of the A1(M) is some 65 miles to the south.

The property is situated in Ingoldmells 4 miles north of Skegness town centre. The property is well located in a holiday village by a number of large caravan parks.

Key Points

  • Let to Martin McColl Limited for 16.5 years
  • Fixed uplifts throughout at 2% pa payable after 1.5 years 5 yearly thereafter
  • Net Initial Yield 6.57%
  • Reversionary yield in 2022 to 7.26%

The property is a modern single storey modern detached unit under a pitched tiled roof.  The premises are arranged as a ground floor convenience store with ancillary accommodation to rear of the premises. The property has recently been extensively refurbished  and refitted to McColl’s standard format.

Sales (Convenience Store) 2117 sq ft 197 sq m
Ancillary   510 sq ft   47 sq m
Total NIA 2,627 sq ft 244 sq m

Tenure

Freehold

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from 16th July 2015 on FRI terms and subject to rent reviews after 1.5 years and 5 yearly thereafter upward only reviews subject to fixed uplifts at 2% per annum compounded throughout.  The passing rent is £23,179 per annum.

Year Rent Reversionary Yield
16th January 2022 £25,591 pa 7.26%
16th January 2027 £28,255 pa 8.01%

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.

Proposal

We are instructed to seek offers in excess of £340,000 (subject to contract) for the Freehold interest, which reflects a net initial yield of 6.57% assuming purchasers costs at 3.71%. 

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