Well Secured Forecourt Convenience Investment Let to 5A1 Covenant

Frome, Somerset, BA11 1QX

Available

Property Type Investment
Availability For Sale
Size 2132 sqft
Energy Performance Rating This property has been graded as B 44

Forecourt convenience investment. Let to Bestway Retail Ltd with parent guarantor. Fixed uplifts at 2.5% for 16 years unexpired.


LOCATION

Frome is an attractive Somerset market town situated some 17 miles south of Bath. The town enjoys good road communications, lying just off the A36 Bath to Salisbury road. In addition to the resident population of approximately 32,000, the town serves a wide rural catchment area. The property is situated on the busy A362, Portway, the surrounding area is a mix of residential accommodation and commercial premises. Adjacent to the premises is a B & M Bargains and a Jewson’s Kitchen and Bathroom Showroom. There is a block of industrial units to the rear including an Avon Tyre Centre. The premises is located within a 150 metres of Frome Great Western Railway Station with regular services to London Paddington via Swindon and within short walking distance to Frome Town Centre.

KEY POINTS

  • Highly prominent main road location 150 metres from Frome Station with a high volume of passing trade
  • 24 hour modern purpose built Texaco Service Station with Central convenience store and car wash
  • Let to Bestway Retail Limited with Guarantee from Bestway Holdings Limited a 5A1 covenant
  • The passing rent of £72,000 per annum will be topped up to the 2019 guaranteed rental uplift of £81,461.99 per annum
  • 16 years unexpired (no breaks) with fixed uplifts at 2.5% throughout
  • 2,132 sq ft (198 sq m) GIA on a site of approximately 0.48 acres (0.19 ha)
  • Freehold

Additional Information

The subject property comprises a modern purpose built petrol filling station forecourt with a convenience store of approximately 2,132 sq ft over two storeys. The fuel forecourt supports 4 island layout pumps providing unleaded, diesel and premium unleaded grades of fuel beneath a rectangular shaped canopy. The forecourt offers ample customer car parking.  The convenience store encompasses a modern brick rectangular shaped building under a pitched slate roof. The generous sales area provides a full range of grocery products, off licence, bakery, general motorist products, confectionery, Costa Coffee module and an ATM.

Floor Sq Ft Sq M
Ground Sales Area 881 82
First Floor Ancillary/Staff 1,251 116
Total 2,132 198

Site

The site extends to approximately 0.48 acres (0.19 hectares).

Tenure

Freehold.

Tenancy

The whole property is let to Bestway Retail Limited guaranteed by Bestway Wholesale Limited for a term of 20 years from the 30th October 2014 at current rent of £72,000 per annum. The lease provides for 2.5% per annum compound uplifts every fifth year of the term and contains full repairing and insuring covenants. The vendor will top up the rent to £81,461.89 per annum from completion until 30th October 2019 by way of a reduction in the purchase price.

Rental Uplifts

YEAR RENT REVERSIONARY
YIELD
30th October 2024 £92,166.39 pa 6.51%
30th October 2029 £104,277.47 pa 7.36%

Covenant

The lease to Bestway Retail Limited is Guaranteed by Bestway Wholesale Limited until Bestway Retail Limited posts two consecutive years’ net profit at Companies House exceeding £10million.  Bestway Retail Limited operates approximately 182 stores and supplies a further 500 (approximately) convenience stores which are operated by other companies. Further information can be found at www.bestwaywholesale.co.uk.

For the year ended 30th June 2017, Bestway Wholesale Limited (Guarantor) reported a turnover of £1.651bn, a pre-tax profit of £6.354m, shareholders’ funds of £88.162m and a net worth of £85.255m. (Source: Experian 09.08.2018.)

Forecourt Convenience Market

Within the forecourt convenience market, demand for assets offering long leases to strong covenants remains high. The market is one of only a few sectors where the occupiers remain active and willing to agree 15 year plus occupational leases, with fixed or index linked rent reviews.

Given the lack of stock providing these characteristics available in the open market, forecourt convenience yields have hardened in the last 12 months. Yields currently stand in the high 5%’s for assets providing long income streams and these continue to be targeted by investors.

EPC

The property has an EPC rating of B44. 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 £1,336,000 (One Million, Three Hundred and Thirty Thousand Pounds) Subject to contract and exclusive of VAT.

A purchase at this level would reflect a Net Initial Yield 5.75%, assuming purchaser’s costs of 6.01%.

< Back to properties VIEW SHORTLIST Download Central Store Frome Marketing Details .pdf Download Lease Download Official Copy (Title Plan) - WS39312 Download Deed of Variation Download Frome EPC .pdf Download RR - Frome.pdf Download Environmental Site Investigation.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


This site uses Google Analytics cookies. We use the Google Analytics to help us improve the site. The cookies collect information in an anonymous form, including the number of visitors to the site, where visitors have come to the site from and the pages they have visited on the site. Please accept if you would like to continue with cookies enabled. If you want to change your settings click here