McColl's Convenience Store - St Austell

St Austell, PL25 4HB

Available

Property Type Investment
Availability For Sale
Size 3535 sqft
Energy Performance Rating This property has been graded as C 67

McColl's Convenience Store


LOCATION

St Austell, with a population of some 21,000, is a busy and popular tourist town being home to the Eden Project. The town is located 13 miles north-east of Truro, 33 miles west of Plymouth and 11 miles south of Bodmin, and is served by the A390 and A391, which in turn joins the A30 and A38 dual carriageways 7 miles to the north of the town. The property is prominently situated in a densely populated residential suburb ½ mile north-east of St Austell town centre.

KEY POINTS

  • Well secured convenience store located in a densely populated residential area
  • Prominent corner sited building
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Total current rents reserved £25,904 per annum, rising to £31,544 per annum in 2029
  • Fixed uplifts at 2% pa
  • Net initial yield of almost 6% with a reversionary yield in April 2024 to 6.57%

Description

The property is a well maintained corner sited two storey detached building under pitched slate roof with retail extension to the front and side of the premises. The retail shop is arranged over the ground floor with ancillary accommodation. There is excellent car parking area to the front of the unit with spaces available for up to 9 cars.  The unit has recently been refitted to McColl’s standard format.

Ground Floor Sales 2,438 sq ft 226 sq m
Ground Ancilliary 1,096 sq ft 102 sq m
Total NIA 3,535 sq ft 328 sq m

Tenure

Freehold subject to the first floor flat being sold off on a long leasehold basis 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 30th October 2017 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £25,000 per annum, in addition a £150 per annum ground rent is received to the freeholder. The vendor will top up the rent to £25,754 per annum from completion until 29th April 2019 by way of a reduction in the purchase price.

Rent

Year Rent Reversionary
Yield
30th April 2024 £28,584 pa 6.57%
30th April 2029 £31,544 pa 7.25%

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 C67.  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 £417,000 (subject to contract) for the freehold interest, which reflects a net initial yield of 5.96% assuming purchasers costs at 4.28%.

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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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