|Energy Performance Rating||This property has been graded as C 57|
Well secured forecourt convenience store investment. 16 years unexpired lease with no breaks & fixed uplifts to 5A1 covenant
Melksham is an attractive Wiltshire market town, located 11 miles east of Bath and 6 miles south of Chippenham. The town is situated on the A350, which provides access to the M4 Motorway (Junction 17) about 11 miles to the north. Atworth is large village, some 8 miles east of Bath and 3 miles south of Corsham. The property is located on the A365 Bath Road, a busy main road connecting to the A4 trunk road leading to Bath and London.
- Located in an historic Wiltshire village sited on the busy A365 Bath Road
- Comprises a Central convenience store and modern BP branded petrol filling station and car wash
- Strong trading location with a modern fuel forecourt supporting eight pumps within a four island layout
- Total current rents reserved £50,913.37 per annum rising to £57,603.80 per annum on 16th February 2025
- Let for a further 16 years unexpired with no options to break
- Guaranteed by the excellent covenant of Bestway Wholesale Limited a D&B 5A1 covenant
- Annual fixed uplifts at 2.5% throughout giving guaranteed rental growth throughout the term
- Offers in excess of £805,000
- Net Initial Yield 6%, with a reversionary yield of 6.78% in October 2020 assuming purchaser’s costs of 5.50%
The property comprises a brick clad single storey convenience store under a flat roof, together with a modern BP branded forecourt supporting eight pumps within a four island layout under an illuminated canopy. There is ample parking and a modern car wash facility on the site.
The sales area incorporates a post office and provides a full range of grocery products, off licence, bakery, general motorist products, confectionery, Costa Coffee module and an ATM.
|Sales Area||864 sq ft||80 sq m|
|Ancillary/Staff||432 sq ft||40 sq m|
|Total||1,296 sq ft||120 sq m|
The site extends to approximately 0.44 acres (0.18 hectares).
|16th October 2025||£57,603.80 pa||6.78%|
|16th October 2030||£65,173.42 pa||7.67%|
The whole property is let to Bestway Retail Limited guaranteed by Bestway Wholesale Limited for a term of 20 years from the 16th February 2015 at a current rent of £45,000 per annum. The lease provides for 2.5% per annum compound uplifts every fifth year of the term and contains full repairing and insuring covenants. The vendor will top up the rent to the fixed uplift of £50,913.37 per annum from completion until 16th February 2020 by way of a reduction in the purchase price.
The lease to Bestway Retail Limited is guaranteed by Bestway Wholesale Limited until Bestway Retail Limited posts two consecutive years’ net profit at Companies House exceeding £10million.
Bestway Retail Limited operates approximately 182 stores and supplies a further 500 (approximately) convenience stores which are operated by other companies. Further information can be found at:
Website Address: www.bestwaywholesale.co.uk
For the year ended 30th June 2017, Bestway Wholesale Limited (Guarantor) reported a turnover of £1.651bn, a pre-tax profit of £6.354m, shareholders funds of £88.162m and a net worth of £85.255m. (Source: Experian 09.08.2018.)
Forecourt Convenience Market
Within the forecourt convenience market, demand for assets offering long leases to strong covenants remains high. The market is one of only a few sectors where the occupiers remain active and willing to agree 15 year plus occupational leases, with fixed or index linked rent reviews.
Given the lack of stock providing these characteristics available in the open market, forecourt convenience yields have hardened in the last 12 months. Yields currently stand in the high 5%’s for assets providing long income streams and these continue to be targeted by investors.
The property has an EPC rating of C57. A copy of the EPC is available on our website.
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).
We are instructed to seek offers in excess of £805,000 (Eight Hundred and Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield 6%, assuming purchaser's costs of 5.49%.
Viewing & Further Information
For further information, or if you would like to arrange a viewing, please contact our agents:
020 7478 9112
020 7478 9113