|Energy Performance Rating||This property has been graded as E 102|
Well Secured Convenience Store Investment. Let to McColl's Retail Group Plc for 16.5 years with no breaks.
The property is situated in the village of Brotton, a residential suburb 2.5 miles south east of Saltburn-by-the-Sea and 15 miles east of Middlesbrough town centre. The property is well situated in the main retail high street located at the end of the parade. Other occupiers in the high street include a Well Pharmacy and a number of local occupiers including butchers, take away restaurants, public house, tattoo studio, barbers and ladies hairdressers. Directly behind the unit is a Coral’s bookmaker and Brotton Working Men's Club.
- Large convenience store serving the local village
- Only major convenience store in the village benefiting from good on street parking in the adjacent side streets
- Property 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 £18,028 per annum rising to £19,904 per annum on 21st August 2025
- Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
- Low passing rent of only £3.35 per sq ft
- Offers in excess of £290,000
- Net Initial Yield of 6.02% with a Reversionary Yield of 6.65% in May 2025
The building is a traditional brick built end of terrace, part single and part two storey under pitched slate and flat roofs. 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, off licence and an ATM. There is a substantial first floor largely unused by the tenant.
The premises benefits from good on street car parking in the adjacent side street.
|Ground - Sales||1,868 sq ft||174 sq m|
|Ground - Ancillary||3,349 sq ft||311 sq m|
|Total NIA||5,127 sq ft||485 sq m|
The whole property is let to Martin McColl Limited with a guarantee from McColl’s Retail Group PLC for a term of 16.5 years from the 21st February 2019 on FRI terms. The lease is subject to fixed uplifts at 2% per annum compounded throughout and the passing rent is £17,500 per annum. The vendor will top up the rent to £18,028 per annum from completion until 21st August 2020 by way of a reduction in the purchase price.
|21st August 2025||£19,904 pa||6.65%|
|21st August 2030||£21,976 pa||7.34%|
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:
The property has an EPC rating of E102. 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 £290,000 (Two Hundred and Ninety Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 6.02% assuming purchaser's costs at 3.18%.
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