Cromwell Road

Available

Newly Converted McColl's Convenience Store Investment. Let to McColl's Retail Group Plc for 16.5 years with no breaks

LOCATION

Ellesmere Port is located on the Wirral peninsula, some 11 miles south of Liverpool and 8 miles north of Chester. The town is served by the M53 Motorway, providing access to the M56 Motorway and hence to the M6, Manchester, Liverpool and the North West. The property is situated on Cromwell Road, next to a new housing development and is within easy walking distance to Ellesmere Port Railway station.

KEY POINTS

• Newly converted convenience store serving a large residential catchment.
• Let for 16.5 years with no breaks to Martin McColl Limited with a guarantee from McColl’s Retail Group Plc
• Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
• Total current rents reserved £29,359 pa rising to £32,415 pa on 28th November 2025
• Net initial yield of 6.25% with a reversionary yield in November 2025 to 6.9%
• Offers in excess of £450,000

Additional Information

A semi detached two storey Art Deco brick building under a part pitched tiled roof, comprising a ground floor shop with internal access to ancillary storage.  The property was a former social club and has recently been extensively refurbished. The new sales area provides a full range of grocery products, off licence and ATM outside facing the car park. The upper parts have been sold off
and redeveloped as flats.

The premises benefits from its own large car park adjacent to the store for up to 10 car parking spaces.

Tenure

a new 999 year long leasehold at a peppercorn.

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 28th May 2019 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £28,500 per annum. The vendor will top up the rent to £29,359 per annum from completion until 28th November 2020 by way of by way of an allowance on the day of completion in the purchase price.

Rental Uplifts

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 25th November 2018 reported a turnover of £835.333 million, a pre-tax profit of £34.718 million and shareholder’s funds of £218.271 million.

The combined group has a turnover in excess of £1.1bn. It employs over 22,000 full and part-time staff and is visited by over 5 million customers every week. The company floated on the London Stock Exchange in 2014. Further information can be found at:

https://www.mccollsplc.co.uk/investors

EPC

The property has an EPC rating of C66. 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).

Anti-Money Laundering Regulations

In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.

Proposal

We are instructed to seek offers in excess of £450,000 (Four Hundred and Fifty Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.25% assuming purchaser's costs at 4.47%.