McColl's Convenience Store - Stanley

Stanley, County Durham, DH9 6PT

Under Offer

Property Type Investment
Availability For Sale
Size 2166 sqft
Energy Performance Rating This property has been graded as C 67

McColl's Convenience Store


LOCATION

Stanley has a resident population of 19,000 with 55,000 living within the wider district of Derwentside. The town lies 10 miles south of Newcastle upon Tyne, 8 miles north-west of Durham and 5 miles west of Junction 63 of the A1(M) and Chester-le-Street. The property is located in a residential suburb 10 miles south of Newcastle town centre. The property is surrounded by a large number of residential housing, opposite a 66 housing development and nearby South Stanley Infant and Nursery School.

KEY POINTS

  • Located in a residential suburb 10 miles south west of Newcastle town centre
  • Opposite a 66 housing development
  • Let for 16.5 years with no breaks to the excellent covenant Martin McColl Limited
  • Total current rents reserved £23,178 per annum rising to £28,254 per annum in 25th February 2030
  • Fixed uplifts at 2% pa throughout
  • Net initial yield of 5.78% with a reversionary yield in February 2025 to 6.39%

ADDITIONAL INFORMATION

The building is a two storey terraced building under a pitched slate roof. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear.  The first floor residential accommodation has been sold off on a long occupational lease.  The premises benefits from good on street car parking in front of the unit.

Ground Floor (Sales) 1,388 sq ft 129 sq m
Ground/First (Ancillary) 778 sq ft 72 sq m
Total NIA 2,166 sq ft 201 sq m

TENURE

Freehold.

TENANCY

The 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 £25,000 per annum. The vendor will top up the rent to £23,178 per annum from completion until 25th February 2020 by way of a reduction in the purchase price.

RENT

Year Rent

Reversionary
Yield

25th February 2025 £25,591 pa 6.39%
25th February 2030 £28,254 pa 7.05%

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 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.

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 £385,000 (Three Hundred and Eighty Five Thousand Pounds) subject to contract for the freehold interest, which reflects a net initial yield of 5.78% assuming purchasers costs at 4.07%.

< Back to properties VIEW SHORTLIST Download Marketing Brochure Download EPC Download Lease Download Official Copy (Title Plan) - DU194912.PDF

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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