Investment Consideration:
Gross Initial Yield: 7.59%
Rental Income: £55,000 p.a.
VAT is applicable to this property
Comprises large retail premises with shared car parking t/a Heron Foods Supermarket
Let until 2037. Rent review in July 2027 capped at 12.50%. Tenant break option in 2032.
Situated on arterial route in predominantly residential area with occupiers nearby including Co-Op Food, Beauty Salon, Takeaway`s, Barber Shop, Gift Store and many more.
Property Description:
Comprises large retail premises t/a Heron Foods Supermarket. The property benefits from shared parking with the adjoining public house and has been newly refurbished in 2022, providing the following accommodation and dimensions:
Ground Floor: 351 sq m (3,779 sq ft)
Open plan retail, storage, ancillary, wc
Tenancy:
The property is at present let to Heron Foods Limited* for a term of 15 years from 1st July 2022 at a current rent of £55,000 p.a. and the lease contains full repairing and insuring covenants. Rent review on 1st July 2027 open market upward only (capped at 12.50%). Tenant option to determine on 30th June 2032 with min 6 months notice.
*Heron Foods is one of the largest discount food retailers in the UK, having been established in 1979 and now trading from over 340 stores nationwide and employing over 6,000 people.
For the year end 30th March 2024, Heron Foods Limited reported a turnover of £560.585M, a pre-tax profit of £22.708M shareholder's funds of £98.064M and a net worth of £97,156M (Source: Experian 21.11.2024).
Location:
The historic and attractive cathedral city of Chester is the administrative centre for the county of Cheshire and a popular tourist destination, located some 21 miles south of Liverpool and 41 miles south-west of Manchester. Chester is well connected by key road networks, including the M53 to Liverpool, M56 to Manchester, A55 for North Wales, and A483 to Wrexham. The property is situated approx. 1.5 miles north east of the city centre on the west side of Coniston Road, opposite the vehicular entrance to the Kingsway Shopping Centre. Occupiers close by include a Co-op convenience store and a variety of local traders situated within Kingsway Shopping Centre in an otherwise predominantly residential area.
