icons_size_white icons_size

AGENT'S DETAILS


Convenience Store Investment, St Peter's Avenue, Cleethorpes, DN35 8HP

For sale: £1,625,000.00|Retail

PROPERTY DETAILS

FOR SALE£1,625,000.00
ADDRESSSomerfield Stores, 52 St. Peters Avenue, Cleethorpes, Lincolnshire, DN35 8HP
TYPERetail
TENUREFor Sale Freehold
POSTED ON12th March 2020

DESCRIPTION

Prime convenience store investment located in popular seaside resort, corner location close to Boots, Wilko and Costa Coffee and opposite large shopper car park, Let to Somerfield Stores Ltd - guaranteed by Co-operative Group Ltd, Lease expiry December 2031 - RPI Index Linked rent reviews, Rent: £94,780.72 per annum, Price: OIEO £1,625,000 - 5.5% NIY

A purpose built two storey shop property occupying a corner location with prominent frontage to St Peter’s Avenue, and benefitting from rear servicing.

LOCATION
Cleethorpes is a popular seaside resort in North East Lincolnshire with a population of £40,000. The town performs strongly 12 months of each year being located approximately 3 miles south east of Grimsby and close to affluent villages such as Waltham and New Waltham.

The property is located at the southern end of the main retail pitch, St Peter’s Avenue, close to Boots, Wilko and Costa Coffee and immediately opposite a large surface shopper car park.

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 & Country Planning (Use Classes) Order 1987 (as amended).

The property is not Listed and nor is it located within a Conservation Area.

TENURE
Freehold

TENANCY
The property is Let to Somerfield Stores Ltd and guaranteed by Co-operative Group Ltd.

The lease is a 25 year lease with effect from 11th December 2006, expiring on 10th December 2031, providing in excess of 11 years unexpired term and secure income.

The current rent passing is £94,780.72 per annum with RPI linked increases in 2021 and 2026.

COVENANT STRENGTH
Somerfield Stores Ltd was acquired by the Co-operative Group and is no longer trading.

The lease is therefore secured on the guarantor covenant - Co-operative Group Ltd.

For the year to date 5th January 2019 the tenant reported a turnover of £10,162,000,000 and a pre-tax profit of £93,000,000.

An up to date credit report is available upon request.

PRICE
OIEO £1,625,000 which would show a net initial yield of 5.5% after deducting normal purchaser’s costs.

VAT
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.

LEGAL COSTS
Each party is to be responsible for their own legal costs incurred in documenting the transaction.

VIEWING
To view the premises and for any additional information please contact the sole agents.

LOCATION

Location: Somerfield Stores, 52 St. Peters Avenue, Cleethorpes, Lincolnshire, DN35 8HP

Cleethorpes (0.3 miles)

New Clee (1.6 miles)

Grimsby Docks (2.1 miles)

close
What do you think of our website?
Complete our survey and
you could win £1000
Start here