|Energy Performance Rating||N/A|
Mixed Use Convenience Store Retail and Residential Investment. Overriding lease to a D&B 5A1 Covenant Let for 16.5 Years no Breaks
Plymouth is a major regional commercial centre and port having a population of some 245,000. In addition to its maritime links, the city is served by the A38/Devon Expressway providing direct access to Cornwall to the west and Exeter and the M5 Motorway to the east. The property is situated in a suburb of Plymouth to the west of the town centre on Marlborough Road a pedestrianised thoroughfare in an established local shopping parade. Occupiers close by include Iceland, Lloyds Pharmacy and a number of local traders, amongst others.
- Located in an established residential suburb 3 miles west of Plymouth town centre
- Situated in a pedestrianised street
- Overriding lease let for 16.5 years no breaks to the excellent covenant Martin McColl Limited with a guarantee from McColls Plc
- Total current rents reserved £77,261 per annum rising to £94,181 per annum in 19th November 2030
- Let to a D&B 5A1 Covenant
- Fixed uplifts at 2% pa offering guaranteed rental growth
The proposal is a two storey substantial mid terrace block comprising a concrete framed building under a flat roof and adjoining period building over ground and two upper floors. The retail offering is arranged over the ground floors with ancillary and staff accommodation to the rear. The upper parts comprise 7 self contained flats with rear access.
McColls sublet the flats and the 2 other retail units and have an overriding lease on the whole.
|Sales||1,484 sq ft||137.87 sq m|
|Ancillary||1,010 sq ft||93.83 sq m|
|15 Marl Street - Cheery Buys||979 sq ft||90.95 sq m|
|23 Marl Street - Hannahs||2,010 sq ft||186.73 sq m|
|Total NIA||5,483 sq ft||509.38 sq m|
The whole property is let to Martin McColl Limited on an overriding lease for a term of 16.5 years from the 19th November 2018 on FRI terms and subject to fixed rental uplifts at 2% per annum compounded throughout. The passing rent is £75,000 per annum. The vendor will top up the rent to £77,621 per annum from completion until the fixed uplift 19th May 2020 by way of a reduction in the purchase price.
Martin McColl sub let two commercial units one to the left and the period building to the right of their store plus the flats on the upper floors.
No 15 Marlborough St – Cheery Buys – Lease renewed 6/18 for 5 years (expires 6/2023) – Rent £9,000 pa.
No 21 Marlborough St – Hannah’s (Charity) – Lease from 4/14 for 10 years (expires 4/2024) – Rent £10,000 pa.
Flats at 17a Marlborough Street – 5 in total, these are currently sub-let on AST’s, 2 at £425 pcm, 3 at £450 pcm. The total sub income received from the flats is £26,400 pa.
Flats above 21 Marlborough Street – 2 in total, these are currently unoccupied.
There are seven flats in total.
|19th November 2025||£85,303 pa||6.62%|
|19th November 2030||£94,181 pa||7.31%|
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 £1,215,000 (One Million Two Hundred And Fifteen Thousand Pounds) Subject to contract for the freehold interest, which reflects a Net Initial Yield of 6% assuming purchasers costs at 5.94%.
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