McColl's Convenience Store

McColl's Convenience Store Part Sublet to Wells Pharmacy. Let to a 5A1 Covenant for 16.5 years with no breaks.

LOCATION

The property is situated in Newbiggin-by-the-Sea this is a small town in Northumberland, on the North Sea coast. Once an important port for shipping grain and a coal mining town, it is still a small fishing port making use of traditional coble boats. The unit has good all year round trade and benefits with a seasonal trade boost from the caravan parks in the local area.

KEY POINTS

• Located in a vibrant coastal village 7 miles east of Morpeth town centre
• Good seasonal trade boost from caravan parks
• Let on overriding lease for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
• Total current rents reserved £33,480 per annum rising to £40,812 per annum in 25th February 2030
• Fixed uplifts at 2% pa throughout
• Offers in excess of £490,000
• Net initial yield of 6.53% with a reversionary yield in February 2025 to 7.21%

The building is a corner sited two storey traditional brick building under a pitched slate roof. The ground floor comprises of two retail units with ancillary and staff accommodation to the rear of the premises.  The first floor is used for additional storage. McColls have part sublet the retail accommodation to a Pharmacy.  The store benefits from on street parking and the public library car park opposite.

Tenure

Freehold.

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 21st August 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £32,500 per annum.  McColl’s sublet part of the ground floor to Bestway National Chemists Ltd T/A Wells Pharmacy at £10,500 pa.  The vendor will top up the rent to £33,480 per annum from completion until 25th February 2020 by way of an allowance on the day of completion in the purchase price.

Rent

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 £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 https://www.mccollsplc.co.uk/investors.

EPC

The property has an EPC rating of B47. 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 £490,000 (Four Hundred and Ninety Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.53% assuming purchasers costs at 4.66%.