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AGENT'S DETAILS


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

For sale: £388,000.00|2293 Sq Ft|Retail, Residential, Industrial

PROPERTY DETAILS

FOR SALE£388,000.00
SIZE2293 Sq Ft
ADDRESSMc Coll's Convenience Store, 171/173 Newcastle Street, Stoke-On-Trent, ST6 3QJ
TYPERetail, Residential, Industrial
TENUREInvestment Opportunity, For Sale Freehold
POSTED ON1st December 2020

DESCRIPTION

Available
Property Type Investment
Availability For Sale
Size 2293 sqft
Energy Performance Rating This property has been graded as C 63

LOCATION
The city of Stoke-on-Trent is a major employment centre located midway between Birmingham and Manchester, immediately adjacent to the M6 motorway (Junction 15). The city is well known for its industrial base in the pottery industry and was created by the amalgamation of the former Stoke-on-Trent and the towns of Burslem, Fenton, Hanley, Tunstall and Longton in 1910. The property is situated in Burslem, a town 3.5 miles north of Stoke-on-Trent city centre with a population in excess of 11,000. Burslem is located on the eastern ridge of the Fowlea Valley within the authority of Stoke-on-Trent. The premises is located on the busy B5051 road leading into Burslem town centre in a primarily residential area. The unit is situated in a secondary retail parade with other local occupiers including takeaway restaurants, tanning salon, hairdressers and a pharmacy. There is significant residential housing directly behind and opposite the premises.

KEY POINTS
Well situated convenience store in local retail parade
First and second floor flats unused
Whole property 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 £25,239 per annum rising to £27,866 per annum on 19th May 2025
Fixed uplifts at 2% pa compounded throughout offering guaranteed rental growth
Net Initial Yield 6.25%, with a reversionary yield of 6.09% in May 2025

ADDITIONAL INFORMATION
The property is a three storey mid terraced brick building under a pitch slate roof. The retail shop is arranged over the ground floor with ancillary and staff accommodation to the rear. There are large first and second floor flats that are currently unused by the tenant. There is ample car parking available opposite the unit.

Ground - Sales 1,445 sq ft 134 sq m
Ground - Ancillary/Staff Accommodation 848 sq ft 79 sq m
First & Second - Unused Flats - -
Total 2,293 sq ft 213 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 £25,239 per annum.

RENTAL UPLIFTS
YEAR RENT REVERSIONARY YIELD
19th May 2025 £27,866 pa 6.9%
19th May 2030 £30,766 pa 7.62%

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 25th November 2018 reported a turnover of £835.333 million, a pre-tax profit of £34.718 million and shareholder’s funds of £218.271 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:

https://www.mccollsplc.co.uk/investors

EPC
The property has an EPC rating of C63. 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 £388,000 (Three Hundred and Eighty Eight Thousand Pounds) subject to contract for the freehold interest, which reflects a Net Initial Yield of 6.25% assuming purchaser's costs at 4.09%.

LOCATION

Location: Mc Coll's Convenience Store, 171/173 Newcastle Street, Stoke-On-Trent, ST6 3QJ

Longport (0.4 miles)

Stoke-on-Trent (2.6 miles)

Kidsgrove (3.4 miles)

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