Freehold Convenience Store Investment
The property comprises of a two storey detached building with a multi-pitched slate roof, brick elevations and double-glazed fenestration throughout. The property has been extended and sensitively converted. Externally, there is a tarmacadam car park located to the rear of the property with 14 lined spaces.
The Co-operative Food convenience store is situated in a prominent position on the junction of Selsmore Road and Mengham Avenue. The main shopping area for Hayling Island is within 50m of the site and the seafront is also within close proximity. Access to the area is very good with the A3023 running the length of the island leading to the A27 in the north.
Freehold, subject to an occupational lease of the whole.
The whole building is let to The Co-operative Group Food Ltd from 22nd December 2014 on a new full repairing and 15 year lease (no breaks) at a rent of £65,458 per annum and a commencing date of approximately 10 months remaining. The lease is subject to 5 yearly rent reviews in line with RPI with a collar of 2% and cap of 4%.
The Co-operative group Ltd established in 1844 and now operates 4,500 outlets with almost 90,000 employees and has an annual turnover of £10.50 billion. The Co-operative Group Food is the UK's 5th largest food retailer with almost 2,800 local convenience stores employing over 69,000 people. Co-operative group Ltd had a turnover for the year end 6th January 2018 of £7,159,600,000 and pre tax profits of £195,400,000. The tennant can therefor be considered of undoubted covenant strength.
Offers are invited in the order of £1,110,000 which reflects a net initial yield of 5.57% assuming usual purchasers costs of 6.5%
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