Prominent convenience store investment in well regarded East Coast resort, attractive location close to seafront, Let to AF Blakemore & Son Ltd on a lease expiring on 25.12.2028, RPI linked compounded rent reviews, current rental income - £61,945 per annum, PRICE - £975,000 net initial yield 6%.
A modern purpose built convenience store abutting the public highway to its front elevation, with a tarmac surfaced car park to the side, sitting on a site extending to about 0.16 hect (0.40 acres).
There is a good range of local and regional retailers within the immediate vicinity of the property.
The property is situated in a prominent and attractive location on the High Street within the popular seaside village of Sutton on Sea. The village forms part of the Civil Parish of Mablethorpe and Sutton which has a combined resident population of 12,531. This grows significantly during the busy summer tourist season.
The much larger resorts of Skegness and Cleethorpes are situated approximately 15 miles to the south and 30 miles to the north respectively, whilst the attractive Wolds town of Louth is situated about 12 miles to the west.
TOWN AND COUNTRY PLANNING
We understand that the property has consent for its current use as a convenience store, falling within Class A1 (Retail) of the Town and Country Planning (Use Classes) Order 1987 (as amended).
The property is not listed and nor is it located within a Conservation Area.
The property will be acquired Freehold, subject to the existing tenancy agreement in place.
The property is Let as a whole to AF Blakemore & Son Ltd on a 15 year lease expiring on the 25th December 2028.
The lease has RPI linked rent reviews, compounded annually, subject to 1% collar and 4% cap. The lease is drawn on Full Repairing and Insuring terms.
The Company have a Creditsafe rating of 71/100 (very low risk) and the latest accounts for the year ending 30th April 2019 show it as having generated a turnover of £1,135,638,000, a net operating profit of £9,431,000, having shareholder funds of £78,505,000 and a net worth of £52,679,000.
£975,000 which would give a purchaser a net initial yield of 6% after standard acquisition costs
The property is elected for VAT. However, the sale of the property will be treated as a TOGC and therefore VAT will not be payable on the purchase price.
Each party is to be responsible for their own legal costs incurred in documenting the transaction.
To view the premises and for any additional information please contact the sole agents.