|Energy Performance Rating||This property has been graded as D 79|
High Yielding Freehold Grade II Listed Convenience Store Investment. Let to a 5A1 Covenant for 16.5 years with no breaks.
Ryde is one of the principal towns on the Isle of Wight, located on the north-east coast of the Isle, midway between the towns of Bembridge and Cowes and is one of the destinations for ferry services from Portsmouth. The property is located within the town centre on the west side of Union Street (A3054), close to its junction with Cross Street. Occupiers close by include Olivo Restaurant (opposite), Lloyds Bank, Domino’s, JD Wetherspoon, HSBC, Sainsbury’s Local and Nationwide Building Society, amongst many others.
- Entirely let to Martin McColl Limited
- Includes residential accommodation on second floor
- Town centre location close to a JD Wetherspoon Public House
- Total current rents reserved £38,500 pa rising to £39,661 pa in September 2020 and to £43,789 pa on 25th September 2025
- Offers in excess of £560,000
- A purchase at this level would reflect a Net Initial Yield of 6.75%, with a Reversionary Yield of 7.45%
The Grade II listed property is arranged on basement, ground and two upper floors to provide a ground floor convenience shop with a sub-post office to the rear and staff/storage accommodation on the first floor. The second floor provides residential accommodation which is accessed from the shop and a separate entrance at the rear. Part of the first floor (rear) and second floor (front) flies over the adjoining 46 Union Street. Please refer to the title documentation for further information.
|Basement - not used||1,237 sq ft||115.00 sq m|
|Ground Floor||2,169 sq ft||201.50 sq m|
|First Floor - ancillary||1,119 sq ft||104.00 sq m|
|First Floor - not used||710 sq ft||66.00 sq m|
|Total NIA||5,235 sq ft||486.50 sq m|
The entire property is let to Martin McColl Ltd with a guarantee from McColl’s Group plc for a term of 16.5 years from 21st March 2019 on full repairing and insuring terms at an initial rental of £38,500 per annum. The lease provides for fixed reviews after 18 months and thereafter every fifth year of the term subject to 2% per annum compounded throughout. The vendor will top up the rent to the first review to £39,661 per annum from completion until 21st September 2020 by way of a reduction in the sale price.
|21st September 2025||£43,789 pa||7.45%|
|21st September 2030||£48,346 pa||8.23%|
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.
The property has an EPC rating of D79. 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 £560,000 (Five Hundred and Sixty Thousand Pounds) subject to contract for the freehold interest, which reflects a Net Initial Yield of 6.75% assuming purchaser's costs at 4.93%.
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