|Energy Performance Rating||N/A|
McColl's Long Let Convenience Store Investment. Let to a 5A1 covenant for 16.5 years with no breaks
The city of Bradford forms part of the West Yorkshire urban area (population 1.5 million), which is the fourth largest urban area in the UK. It is situated about 15 miles west of Leeds and 8 miles north of Huddersfield. Bradford benefits from excellent transport links northbound with the A658 and A650 linking to Harrogate and Skipton and the A650 and M606 motorway linking to the M62. The property is situated in Wibsey a residential suburb 2.5 miles south west of Bradford city centre. The property is located on the busy Beacon Road and forms part of a local retail parade, other occupiers include a take away restaurant and a DIY centre. There is a small industrial estate located directly behind the premises.
- Prominent convenience store in local retail parade
- Large unused first floor
- Whole property let for 16.5 years with no breaks to Martin McColl Ltd with a guarantee from McColl's Retail Group Plc
- Total current rents reserved £25,754 per annum rising to £28,434 per annum on 19th November 2025
- Let to a D&B 5A1 Covenant
- Net Initial Yield 6.03% with a reversionary yield of 6.65% in May 2025 assuming purchaser’s costs of 4.24%.
- Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
- Low passing rent of £7.17 per sq ft excluding the first floor
The property is a two storey end of terrace brick building. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear and in the basement. There is a large first floor with its own separate access that is currently unused by the tenant but has previously been sublet.
The premises benefits from on street car parking to the front of the unit.
|Ground (Sales)||1,469 sq ft||136 sq m|
|2,121 sq ft||197 sq m|
|First Floor (unused)||1,990 sq ft||185 sq m|
|Total||5,580 sq ft||518 sq m|
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 £22,500 per annum. The vendor will top up the rent to £23,178 per annum from completion until 19th May 2020 by way of a reduction in the purchase price.
|19th May 2025||£28,434 pa||6.65%|
|19th May 2030||£31,394 pa||7.35%|
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:
Available on request.
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 £410,000 (Four Hundred and Ten Thousand Pounds) subject to contract for the freehold interest, which reflects a Net Initial Yield of 6.03% assuming purchasers costs at 4.24%.
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