Central Convenience Store and Texaco Branded Petrol Filling Station

Temple Cloud, Somerset, BS39 5BZ

Property Type Investment
Availability For Sale
Size 2723 sqft
Energy Performance Rating This property has been graded as C 71

Well secured forecourt convenience store investment. 16 years unexpired lease with no breaks & fixed uplifts to 5A1 covenant


LOCATION

Temple Cloud is a picturesque village within the Chew Valley in Somerset, 12 miles south west of Bath and 10 miles south of Bristol. The M4 motorway (junction 18) is some 30 miles north. The property is well situated on the A37, a busy main road connecting Bristol in the north (approximately 30 miles) and Yeovil to the south. The nearest town is Midsomer Norton, 5 miles south east via the A37 Bristol Road. The surrounding area is predominantly residential. Within close proximity is a new 70 unit housing estate which has just been completed by Wilson Homes.

KEY POINTS

  • Located 10 miles from Bristol and 12 miles to the historic City of Bath
  • Strong trading location opposite a large residential development by Wilson Homes
  • Comprises a Texaco branded forecourt petrol filling station and Central convenience store
  • Total current rents reserved £70,713.01 per annum rising to £80,005.28 per annum on 31st October 2024
  • Let for a further 16 years unexpired to Bestway Retail Ltd guaranteed by Bestway Wholesale Ltd a 5A1 covenant
  • The proposal includes the Tyre Auto Centre which is sublet by the tenant
  • Fixed uplifts at 2.5% compounded throughout offering guaranteed rental growth
  • Freehold
  • Offers in excess of £1,115,000
  • A purchase at this level would reflect a Net Initial Yield of 6%, with a reversionary yield of 6.78% in October 2024

Additional Information

The property comprises a petrol filling station forecourt and convenience store together with a detached tyre auto centre. The fuel forecourt supports six pumps within a three island layout providing unleaded, diesel and premium unleaded grade of fuel beneath a rectangular canopy.  The forecourt provides ample customer car parking.

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. The tyre auto centre has been sublet by Bestway. Further information is available on request.

ACCOMMODATION
Sales Area 928 sq ft 86 sq m
Ancillary/Staff Accommodation 290 sq ft 27 sq m
Total 1,218 sq ft 113 sq m
Tyre Auto Garage 1,505 sq ft 140 sq m
TOTAL AREA 2,723 sq ft 253 sq m

Site

The site extends to approximately 0.13 acres (0.05 hectares).

Tenure

Freehold

Rental Uplifts

YEAR RENT Reversionary
Yield
30th October 2024 £80,005.28 pa 6.78%
30th October 2029 £90,518.64 pa 7.67%

Tenancy

The whole property is let to Bestway Retail Limited, guaranteed by Bestway Wholesale Limited for a term of 20 years from the 31st October 2014 at a current rent of £62,500 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 £70,713.01 per annum from completion until 31st October 2019 by way of a reduction in the purchase price.

Covenant

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.

EPC

The property has an EPC rating of C71. 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 £1,115,000 (One Million, One Hundred and Fifteen Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 6%, assuming purchaser's costs of 5.86%.

< Back to properties VIEW SHORTLIST Download Official Copy (Title Plan) - AV166814 - Temple Cloud.PDF Download EPC - Temple Cloud Download RR - Temple Cloud Download Deed of Variation Download Licence to Assign Download Lease Download Marketing Brochure Download Geo2 Quantitive Risk Assessment - Lowers Filling Station, Temple Cloud.pdf

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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