McColl's Convenience Store

Hyde, SK14 4RN

Property Type Investment
Availability For Sale
Size 2461 sqft
Energy Performance Rating This property has been graded as C 71

Prominently Located Convenience Store Investment with Substantial Customer Car Park. Let for 16.5 years with no breaks.


LOCATION

Hyde is a busy suburb of Manchester located approximately 8 miles south-east of the city centre. The town is situated on the A57 which provides access to the city centre and the M67, with Junction 3 less than a mile north-west of the town centre. The property is situated in a residential suburb 1 mile north of Hyde town centre. The store is prominently located on the busy junction fronting the B1670. Directly opposite the unit on either side of the junction is a public house and Betfred bookmakers.

KEY POINTS

  • Large prominently located convenience store
  • The unit benefits from an extensive customer car park
  • Property is 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 £20,603 pa rising to £22,747 pa on 21st August 2025
  • Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
  • Low passing rent of only £8.13 per sq ft
  • Offers in excess of £330,000
  • Net Initial Yield of 6.03%, with a Reversionary Yield of 6.65% in 2025

The building is a single storey corner sited unit under flat roof.  The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear.  The sales area provides a full range of grocery products, bakery and an off licence.

The premises benefits from its own customer car park to the rear of the store.

Ground - Sales 1,541 sq ft 143 sq m
Ground - Ancillary 920 sq ft 85 sq m
Total NIA 2,461 sq ft 228 sq m

Tenure

Freehold

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 21st February 2019 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout.  The passing rent is £20,000 per annum. The vendor will top up the rent to £20,603 per annum from completion until 21st August 2020 by way of a reduction in the purchase price.

Rental Uplifts

Year Rent Reversionary Yield
21st August 2025 £22,747 pa 6.65%
21st August 2030 £25,115 pa 7.34%

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 C71. 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 £330,000 (Three Hundred and Thirty Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.03% assuming purchaser's costs at 3.62%.

< Back to properties VIEW SHORTLIST Download Marketing Brochure Download Lease dated 21 February 2019.pdf Download EPC - Hyde .pdf Download Official Copies Title No. GM570396.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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