Prominently located convenience store
Good car parking available on the street or behind the store on Whitecross Road
Let for 16.5 years to the excellent covenant Martin McColl Limited with just under 11 years unexpired
Fixed uplifts at 2% per annum compounded throughout offering guaranteed rental growth
Passing rent £23,885 pa
Low passing rent of £6.03 per sq ft
A purchase at this level would reflect a Net Initial Yield of 6.75%, with a reversionary yield of 7.46% in 2027 assuming purchaser’s costs of 3.72%.
Warrington is strategically located in the county of Cheshire, 18 miles south-west of Manchester and 20 miles east of Liverpool. The town enjoys excellent motorway links to the M62 Motorway, the M6 Motorway via Junction 21A, and the M56 Motorway via Junction 10.
The property is located in a residential suburb ½ mile to the west of Warrington town centre.
The premises are situated on the corner of Lovely Lane at the junction with A57 which links to junction 7 of the M62 Motorway. Nearby is Warrington Bank Quay Railway Station and Warrington Hospital. Occupiers in the nearby vicinity include a number of local traders.
The property is a corner building of brick construction over ground, first and attic floors under a pitched slate roof forming part of a local retail parade. The store is a large unit arranged over the ground floor with a sales area providing a range of grocery products, off license, hot food items and an ATM. The first and attic floors are currently void. There is ample free car parking available adjacent to the store on Whitecross Road.
Ground - Sales 2,405 sq ft
Ground - Ancillary 1,554 sq ft
Total NIA 3,959 sq ft
Long leasehold (virtual freehold) circa 877 years unexpired at a peppercorn.
The whole property is let to Martin McColl Limited for a term of 16.5 years from 23rd February 2016 on FRI terms and subject to 5 yearly upward only rent reviews with fixed uplifts at 2% per annum compounded throughout. The passing rent is £21,633 per annum. The vendor will top up the rent to £23,885 per annum from completion until 23rd August 2022 by way of a reduction in the purchase price.
23.08.2027 Rent: £26,731 Reversionary Yield: 7.46%
McColl’s trades from approximately 1,400 convenience stores and newsagents nationwide. Its brands include McColl’s, Martin’s and RS McColl and the company has recently entered into a three year supply partnership with Morrisons.
For the year ending 24th November 2019 the company reported a gross turnover of £841.9m, an operating profit (excluding adjustment items) of £8.9m and shareholder’s funds of £145.06m. The combined group has an annual revenue of £1.2 billion, employs over 22,000 full and part time staff and is visited by over five million customers every week.
Further information can be found at: www.mccollsplc.co.uk/investors.
The property has an EPC rating of D84. A copy of the EPC is available on our website.
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).
We are instructed to seek offers in excess of £341,000 (Three Hundred and Forty One Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 6.75%, with a reversionary yield of 7.46% in 2027 assuming purchaser’s costs of 3.72%.