McColl's Convenience Store - Bearpark

Durham, DH7 7AA

Available

Property Type Investment
Availability For Sale
Size 3032 sqft
Energy Performance Rating This property has been graded as C 74

McColl's Convenience Store


LOCATION

The historic cathedral city of Durham is situated on the River Wear, some 18 miles south of Newcastle upon Tyne. The city boasts a major university and has a resident population of some 36,500. The town has good communications with Junction 62 of the A1(M) within 2 miles providing swift road access to Newcastle and Teesside. The city is on the main East Coast rail line from London to Edinburgh which can be reached in approximately 2.5 hours. Nearest international airports are Newcastle and Durham Tees Valley both of which are within 25 miles. The unit is located in the village of Bearpark 2½ miles west of Durham.

KEY POINTS

  • Located in a village 2½ miles west of Durham
  • The property is situated in the heart of village surrounded by residential housing
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Total current rents reserved £25,754 per annum rising to £31,394 per annum in 18th November 2029
  • Offers in excess of £420,000
  • Fixed uplifts at 2% pa
  • Net initial yield of 5.88% with a reversionary yield in April 2024 to 6.49%

ADDITIONAL INFORMATION

The building is a two storey detached building under a pitched roof. The retail shop is arranged  over the ground floor with ancillary and staff accommodation to the rear, the first floor is void and not in use. A small commercial unit to the right hand side has been sold off to a take-away operator. There is good car parking availability in front of the unit and a large customer car park at the rear of the property.

Ground (Sales) 1,064 sq ft 99 sq m
Ground (Ancillary) 768 sq ft 71 sq m
First (Not in Use) 1,200 sq ft 111 sq m 
Total NIA 3,032 sq ft  281 sq m

TENURE

Freehold.

TENANCY

The property is let to Martin McColl Limited for a term of 16.5 years from the 18th May 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £25,000 per annum.  The vendor will top up the rent to £25,754 per annum from completion until 18th November 2019 by way of a reduction in the purchase price.

RENT

Year Rent Reversionary Yield
18th November 2024 £28,434 pa 6.49%
18th November 2029 £31,394 pa 7.17%

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 26th November 2017 reported a turnover of £713.391 million, a pre-tax profit of £27.168 million and shareholder’s funds of £186.239 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 http://www.mccolls.co.uk/investor.

EPC

The property has an EPC rating of C74. 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 £420,000 (Four Hundred and Twenty Thousand
Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 5.88% assuming purchasers costs at 4.3%.

< Back to properties VIEW SHORTLIST Download Marketing Brochure Download EPC.pdf Download Lease dated 18 May 2018 (N & M).pdf Download Official Copy (Title Plan) - DU287544.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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