McColl's Convenience Store - Northallerton

Northallerton, DL6 1JZ

Available

Property Type Investment
Availability For Sale
Size 2869 sqft
Energy Performance Rating This property has been graded as C 56

McColl's Convenience Store Long Lease to a 5A1 Covenant with fixed uplifts


LOCATION

Northallerton, the county town of North Yorkshire, is an attractive and prosperous market town situated on the A684 between the A19 and A1. The town has a population of approximately 16,000. The premises are situated in a highly populated residential housing area within short walking distance to Friarage Hospital.

KEY POINTS

  • Located in a densely populated residential area
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Fixed uplifts at 2% pa
  • Total current rents reserved £37,235 per annum, rising to £45,357 per annum in 2029
  • Net initial yield of almost 6% with a reversionary yield in April 2024 to 6.52%


The property is a well maintained single storey semi detached building forming part of a double storey dwelling which comprises a ground floor shop and a first floor flat sold off on a long lease. The retail shop is arranged over the ground floor with ancillary accommodation to the rear of the unit and part first floor mezzanine.  The premises benefit from a pull in offering good parking for customers.

Ground Floor Sales 1,865 sq ft 173 sq m
Ancilliary 1,004 sq ft 93 sq m
Total NIA 2,869 sq ft 267 sq m

Tenure

Freehold subject to the first floor flat being sold off on a long leasehold at a ground rent of £150 per annum.

Tenancy

The property is let to Martin McColl Limited for a term of 16.5 years from the 20th October 2017 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £36,000 per annum in addition a £150 per annum ground rent is received to the freeholder. The vendor will top up the rent to £37,085 per annum from completion until 19th April 2019 by way of a reduction in the purchase price.

Rent

Year Rent

Reversionary
Yield

20th April 2024 £41,095 pa 6.52%
20th April 2029 £45,357 pa 7.2%

Covenant

McColl’s trade from over 1,300 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 27th November 2016 reported a turnover of £518,736 million, a pre tax profit of £25,361 million and shareholder’s funds of £160,391 million.  The combined group has a turnover in excess of £1bn. It employs nearly 20,000 full and part-time staff and is visited by over 4.5 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 C56. 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 £600,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 5.91% assuming purchasers costs at 5.05%.

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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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