McColl's Convenience Store - Stockton Road

Hartlepool, Cleveland, TS25 5AB

Available

Property Type Investment
Availability For Sale
Size 2279 sqft
Energy Performance Rating This property has been graded as C 75

Well Secured Convenience Store Investment. Let to a 5A1 Covenant for 16.5 years with no breaks


LOCATION

Hartlepool, with a population of approximately 87,000, is located approximately 8 miles north of Middlesbrough. The town benefits from excellent road communications with the A689 dual carriageway providing direct links to both the A19 and the A1(M). The property is situated in a residential suburb, 1 mile south of Hartlepool. The store forms part of a local retail parade. Other occupiers include a butchers and newsagents.

KEY POINTS

  • Located in a busy retail neighbourhood parade
  • Good on street parking
  • 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 £22,148 per annum rising to £24,453 per annum on 18th May 2025
  • Fixed uplifts at 2% pa compounded throughout offering guaranteed future rental growth
  • Net initial yield of 6% with a reversionary yield in May 2025 to 6.63%

Additional Information

The unit forms part of a parade of three detached retail units with upper parts. The property itself is a two storey detached brick building under a pitched tiled roof. The store is arranged over the ground floor with ancillary and staff accommodation and part first floor. The remaining half is residential accommodation and is sold off on a long leasehold.

The premises benefits from good on street car parking from the neighbouring
residential streets.

Ground - Sales 1,038 sq ft 96 sq m
Ground/First - Ancillary 1,241 sq ft 115 sq m
Total 2,279 sq ft 211 sq m

Tenure

Freehold.

Tenancy

The whole property is let to Martin McColl Limited for a term of 16.5 years from the 20th November 2018 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £21,500 per annum. The vendor will top up the rent to £22,148 per annum from completion until 18th May 2020 by way of a reduction in the purchase price.

Rental Uplifts

YEAR RENT REVERSIONARY
YIELD
18th May 2025 £24,453 pa 6.63%
18th May 2030 £26,999 pa 7.32%

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 C75. 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 £355,000 (Three Hundred and Fifty Five Thousand Pounds) subject to contract for the freehold interest, which reflects a Net Initial Yield of 6% assuming purchaser's costs at 3.84%.

< Back to properties VIEW SHORTLIST Download Marketing Brochure Download Official Copy (Title Plan) - CE125396 - Copy.PDF Download Official Copy (Title Plan) - CE196070 - Copy.PDF Download EPC - Copy.PDF Download Recommendation Report.PDF Download EPC 120a - Copy.pdf Download Lease dated 20 November 2018.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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