|Energy Performance Rating||This property has been graded as C 73|
Substantial Convenience Store Investment. Let for 16.5 years with no breaks.
South Shields, with a population of approximately 83,000, is situated south of the River Tyne, some 11 miles east of Newcastle upon Tyne. Road communications are good, with the A1300 connecting to the A194 and hence the A1, whilst the Metro (light railway) provides frequent services to Newcastle city centre. The town centre is undergoing significant redevelopment with the £100m South Shields 365 project. This will provide a new retail, leisure and cinema development, a new transport interchange and improved public realm. The property is situated in a predominantly residential area on Dean Road, a busy local retail parade. Other occupiers include Ladbrokes, Stage Coach, public houses and numerous local occupiers. The store benefits from being surrounded by numerous local primary and secondary schools. The unit is within short walking distance of Chichester Metro Station and nearby The Port of Tyne.
- Prominently located convenience store
- Store benefits from a large public customer car park to rear
- The whole property is let for 16.5 years with no breaks to Martin McColl Limited
- Total current rents reserved £28,329 pa rising to £31,278 pa on 19th May 2025
- Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
- Low passing rent of only £8.50 per sq ft
- Offers in excess of £420,000
- Net Initial Yield of 6.47%, with a Reversionary Yield of 7.14% in 2025
The building is a brick built end of terrace two storey under pitched slate roof. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear and in part of the first floor. The sales area provides a full range of grocery products, bakery, ATM and an off licence. There is a flat on the first floor/attic. This has been sold off on a long leasehold basis.
The premises benefits from a large public customer car park to the rear of the store.
|Ground - Sales||1,318 sq ft||122 sq m|
|Ground / First - Ancillary||1,919 sq ft||178 sq m|
|Total NIA||3,237 sq ft||300 sq m|
Freehold. The first floor and attic flat has been sold off on a long leasehold.
The whole property is let to Martin McColl Limited for a term of 16.5 years from 20th November 2019 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.
|19th May 2025||£31,278 pa||7.14%|
|19th May 2030||£34,533 pa||7.88%|
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:
The property has an EPC rating of C73. 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 £420,000 (Four Hundred and Twenty Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.47% assuming purchaser's costs at 4.3%.
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