McColl's Convenience Store

Hollesley, Woodbridge, IP12 3QU

Property Type Investment
Availability For Sale
Size 3000 sqft
Energy Performance Rating This property has been graded as D 85

Convenience Store with Post Office Investment in Affluent Suffolk Village. Let for 16.5 years with no breaks.


LOCATION

Woodbridge is an attractive and affluent town located along the banks of the River Deben. Situated in an Area of Outstanding Natural Beauty, some 8 miles east of Ipswich within close proximity to the Suffolk coast. The town is located just off the A12 which provides access to the A14. The property is situated in Hollesley, a residential village 7.5 miles south east of Woodbridge town centre. The unit is situated in The Street, the main thoroughfare for the village. Other occupiers in the village include a public house and a local car showroom/ mechanics. The store also benefits from being nearby Hollesley Primary School.

KEY POINTS

  • Busy trading store located in an affluent village
  • Only convenience store in the village benefitting from good customer parking in front of the unit
  • The property is let for 16.5 years with no breaks to Martin McColl Limited
  • Total current rents reserved £30,904 per annum rising to £34,121 per annum on 5th December 2024
  • Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
  • Offers in excess of £515,000
  • Net Initial Yield of 5.73% with a Reversionary Yield of 6.32% in May 2025

The building is a single storey detached property under a pitched and flat roof. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear. The sales area incorporates a post office and provides a full range of grocery products, off licence and an ATM. There is ample customer car parking available in front of the store or on the street.

Ground - Sales 2,000 sq ft 186 sq m
Ground - Ancillary 1,000 sq ft 93 sq m
Total NIA 3,000 sq ft 279 sq m

Tenure

Freehold

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 5th June 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout.  The passing rent is £30,000 per annum. The vendor will top up the rent to £30,904 per annum from completion until 5th December 2019 by way of a reduction in the purchase price.

Rental Uplifts

Year Rent Reversionary Yield
5th December 2024 £34,121 pa 6.32%
5th December 2029 £37,672 pa 6.98%

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 D85. 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 £515,000 (Five Hundred and Fifteen Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 5.73% assuming purchaser's costs at 4.76%.

< Back to properties VIEW SHORTLIST Download Marketing Brochure Download Lease dated 5 June 2018.PDF Download Official Copy (Title Plan) - SK386765.pdf Download EPC - Hollesley .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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