McColl's Convenience Store

LOCATION

The city of Bradford forms part of the West Yorkshire urban area (population 1.5 million), which is the fourth largest urban area in the UK. It is situated about 15 miles west of Leeds and 8 miles north of Huddersfield. Bradford benefits from excellent transport links northbound with the A658 and A650 linking to Harrogate and Skipton and the A650 and M606 motorway linking to the M62. Bradford Interchange Railway Station provides regular services to London Kings Cross. The property is situated in Undercliffe a residential suburb 1 mile south west of Bradford city centre. The property is located on the busy arterial road the A658 Otley Road and forms part of a local retail parade, other occupiers include a take away restaurants, tattoo studio, hairdressers and a pharmacy. There is residential housing directly behind the premises, the store also benefits being in close proximity to two secondary schools, Feversham Academy and Carlton Bolling College.

KEY POINTS

• Prominent convenience store in local retail parade
• Busy trading store nearby to Feversham Academy Secondary School and Carlton Bolling College
• Large first floor used as storage
• Total current rents reserved £28,329 pa rising to £31,278 pa on 19th November 2025
• Poperty let for 16.5 years with no breaks to the excellent covenant Martin McColl Ltd, guarantee from McColl's Retail Group Plc
• Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
• Low passing rent £7.35 per sq ft
• Net Initial Yield of 6.39% with a reversionary yield of 7.05%
• Offers in excess of £425,000

Additional Information

The property is a two storey end of terrace brick building under a pitch slate roof. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear. There is a large first floor currently used for additional storage.

Tenure

Freehold

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 20th November 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £27,500 per annum. The vendor will top up the rent to £28,329 per annum from completion until 19th May 2020 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 £1bn. It employs nearly 20,000 full and part-time staff and is visited by over 4.5 million customers every week. The company floated on the London Stock Exchange in 2014. For further information can be found at https://www.mccollsplc.co.uk/investors.

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 and therefore VAT will be payable on the purchase price.  However, it is anticipated that the sale will be treated as Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers in excess of £425,000 (Four Hundred and Twenty Five Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.39% assuming purchaser's costs at 4.33%.