McColl's Convenience Store - Southport

Southport, PR9 9TA

Available

Property Type Investment
Availability For Sale
Size 2669 sqft
Energy Performance Rating N/A

McColl's Convenience Store


LOCATION

Southport, with a population of some 91,000, is a prosperous and attractive coastal resort town located 16 miles north of Liverpool and 19 miles south-west of Preston. The town benefits from good communications, being located at the junction of the A565 and A570, which provides direct access to the M58 Motorway and the national motorway network thereafter. The property is situated in the suburb of Marshside, approximately 2.5 miles to the north of the town centre. Specifically, the property is located on the west side of Marshside Road, opposite its junction with Lytham Road in a predominantly residential area. Occupiers close by include Crafts and Quilts, Vicks Gents Hair Stylist, M Ruston Funeral Directors, Milton Associates, Imagination Hair and Beauty and M & J Roofing.

KEY POINTS

  • Ideal SIPP purchase
  • Neighbourhood convenience store situated in a densely populated residential area
  • Let for 16.5 years with no breaks to the excellent covenant from Martin McColl Limited
  • Fixed uplifts at 2% pa throughout
  • Current rent reserved £32,965 per annum, rising to £40,184 per annum in May 2028
  • Net initial yield of 5.71% with a reversionary yield in May 2023 to 6.31%

Additional Information

The property is arranged on ground floor only to provide a convenience store with ancillary
accommodation to the rear. To the front of the property is parking for some 9 cars.

Ground Floor Sales 2,669 sq ft 248 sq m

Tenure

Freehold

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from the May 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £32,000 per annum. The vendor will top up the rent to £32,965 per annum from completion until 25th May 2019 by way of a reduction in the purchase price.

Rent

Year Rent Reversionary
Yield
 
25th May 2023 £36,396 pa 6.31%  
25th May 2028 £40,184 pa 6.97%  

Covenant

McColl’s trade from over 1,600 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 D96. A copy of the EPC is available on our website.

VAT

The property is not elected for VAT.

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 5.71% assuming purchasers costs at 4.89%.

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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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