|Energy Performance Rating||This property has been graded as C 63|
Well Secured Convenience Store Investment. Let to a 5A1 Covenant for 16.5 years with no breaks.
The city of Stoke-on-Trent is a major employment centre located midway between Birmingham and Manchester, immediately adjacent to the M6 motorway (Junction 15). The city is well known for its industrial base in the pottery industry and was created by the amalgamation of the former Stoke-on-Trent and the towns of Burslem, Fenton, Hanley, Tunstall and Longton in 1910. The property is situated in Burslem, a town 3.5 miles north of Stoke-on-Trent city centre with a population in excess of 11,000. Burslem is located on the eastern ridge of the Fowlea Valley within the authority of Stoke-on-Trent. The premises is located on the busy B5051 road leading into Burslem town centre in a primarily residential area. The unit is situated in a secondary retail parade with other local occupiers including takeaway restaurants, tanning salon, hairdressers and a pharmacy. There is significant residential housing directly behind and opposite the premises.
- Well situated convenience store in local retail parade
- First and second floor flats unused
- Whole property let for 16.5 years with no breaks to Martin McColl Limited with a guarantee from McColl’s Retail Group Plc
- Total current rents reserved £25,239 per annum rising to £27,866 per annum on 19th May 2025
- Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
The property is a three storey mid terraced 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 are large first and second floor flats that are currently unused by the tenant. There is ample car parking available opposite the unit.
|Ground - Sales||1,445 sq ft||134 sq m|
|Ground - Ancillary/Staff Accommodation||848 sq ft||79 sq m|
|First & Second - Unused Flats||-||-|
|Total||2,293 sq ft||213 sq m|
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 £24,500 per annum. The vendor will top up the rent to £25,239 per annum from completion until 19th May 2020 by way of a reduction in the purchase price.
|19th May 2025||£27,866 pa||6.69%|
|19th May 2030||£30,766 pa||7.38%|
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:
The property has an EPC rating of C63. A copy of the EPC is available on our website.
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).
We are instructed to seek offers in excess of £400,000 (Four Hundred Thousand Pounds) subject to contract for the freehold interest, which reflects a Net Initial Yield of 6.06% assuming purchaser's costs at 4.18%.
Viewing & Further Information
For further information, or if you would like to arrange a viewing, please contact our agents:
020 7478 9112
020 7478 9113