McColl's Convenience Store - Dean Mount, Manchester

Dean Mount, M40 5EF

Available

Property Type Investment
Availability For Sale
Size 4512 sqft
Energy Performance Rating This property has been graded as C 56

McColl's Convenience Store


LOCATION

The city of Manchester, which has a population in excess of 400,500, is the principal industrial, cultural and commercial centre of the North West and the UK’s second financial centre. The city has 2.5 million people living within a 12 mile radius of the centre. Manchester benefits from excellent communications via the M60, M62, M56, M66 and M67 motorways, Intercity rail links and an international airport. The property is prominently situated on the B6393 Lightbowne Road, 4 miles north of Manchester city centre. Other occupiers in the vicinity include pharmacy, post office, barber and fish & chip take away restaurant.

KEY POINTS

  • Convenience store located in a densely populated residential area
  • Prominently corner cited building
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts at 2% pa
  • Passing rent £37,500 per annum
  • Net initial yield of 5.75% with a reversionary yield in April 2019 to 5.93%


The property is a well maintained corner sited two storey detached building.  The retail shop is arranged over the ground floor with ancillary accommodation.  The first floor has been sub-let to a boxing club.  The unit has recently been refitted to McColl’s standard format.

Ground Floor Sales 1,263 sq ft 117 sq m
Ground Ancillary 1,399 sq ft 130 sq m
First Floor (Boxing Club) 1,850 sq ft 172 sq m
Total NIA 4,512 sq ft 419 sq m

Tenure

Freehold.

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from the 20th October 2017 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout.  The passing rent is £37,500 per annum.

Year Rent Reversionary
Yield
20th April 2019 £38,631 pa 5.93%
20th April 2024 £42,651 pa 6.54%
20th April 2029 £47,090 pa 7.23%

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 C56.  A copy of the EPC is available on our website.

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 £620,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 5.75% assuming purchasers costs at 5.11%.

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Viewing & Further Information

For further information, or if you would like to arrange a viewing, please contact our agents:

Michael Braier

020 7478 9112

CONTACT AGENT


Nick Sherling

020 7478 9113

CONTACT AGENT


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