McColl's Convenience Store

Available

Prominently Located Convenience Store. Let to Martin McColl Ltd for a term of 20 years

LOCATION

Caernarfon is the county town of Gwynedd and is a popular tourist centre whose resident population greatly increases during the summer months. The town is situated in North Wales, overlooking the Menai Straits, with access to the A55 via the A487 linking to the M56 and the national motorway network. The property is unopposed, located in the village Bontnewydd 2 miles south of Caernarfon town centre.

KEY POINTS

• Prominently located convenience store
• Good customer car parking available
• Unopposed retail opportunity with large rural catchment
• Passing rent £24,290 per annum
• Trading has been enhanced by purchasing the nearby convenience store and post office into the business eliminating competition
• Let for 20 years to the excellent covenant Martin McColl Limited with just under 15 years unexpired
• Fixed uplifts at 2% per annum payable 5 yearly
• Freehold
• Net Initial Yield of 6.5%, with a reversionary yield of 7.02% in October 2024
• Offers in the region of £367,500

The property is a detached single storey unit arranged on the ground floor convenience
store with ancillary and staff accommodation to the rear. The sales area incorporates a
post office, a full range of grocery products, an off licence and an ATM. The property
benefits from a pull in area to the front of the property and a car park for circa 8
vehicles adjacent to the premises.

Tenure

Freehold.

Tenancy

The property is let to Martin McColl Limited for a term of 20 years from 13th October 2014 on FRI terms and subject to 5 yearly upward only rent reviews with fixed uplifts at 
2% per annum compounded throughout. The passing rent is £24,290 per annum.

Rent

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 D80. 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 £367,500 (Three Hundred and Sixty Seven Thousand Five Hundred Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.5% assuming purchasers costs at 3.94%.