Property
McColl’s Convenience Store, 166 Dean Road, Meldon Terrace, South Shields
The whole property is let to Martin McColl Limited for a term of 16.5 years from the 20th November 2019 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £28,329 per annum.
For the year ending 25th November 2018 the tenant reported a turnover of £835 million, pre-tax profit of £34 million and shareholder’s funds of £218 million.
Seeking offers in excess of £420,000 for the freehold interest. A sale at this level reflects a net initial yield of 6.47% allowing for purchasers costs of 4.30%.
LOCATION
South Shields, with a population of approximately 83,000, is situated south of the River Tyne, some 11 miles east of Newcastle upon Tyne. Road communications are good, with the A1300 connecting to the A194 and hence the A1, whilst the Metro (light railway) provides frequent services to Newcastle city centre. The town centre is undergoing significant redevelopment with the £100m South Shields 365 project. This will provide a new retail, leisure and cinema development and a new transport interchange.
TENANCY
The whole property is let to Martin McColl Limited for a term of 16.5 years from the 20th November 2019 on FRI terms and subject to fixed uplifts at 2% per annum compounded throughout. The passing rent is £28,329 per annum.
COVENANT
McColl’s trade from over 1,600 stores throughout the UK with approximately three quarters of those being convenience stores and the remainder trading as newsagents. Their brands include McColl’s, Martin’s and R. S. McColl. For the year ending 25th November 2018 reported a turnover of £835 million, a pre-tax profit of £34 million and shareholder’s funds of £218 million.
It employs over 22,000 full and part-time staff and is visited by over 5 million customers every week. The company floated on the London Stock Exchange in 2014.
VAT
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)
LEGAL COSTS
Each party is to be responsible for their own costs incurred in the transaction.
EPC
The property has an EPC rating of C73.
ANTI-MONEY LAUNDERING REGULATIONS
In accordance with anti-money laundering regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
PROPOSAL
Offers in excess of £420,000 are invited for the freehold interest of the property. A sale at this level reflects a net initial yield of 6.47% allowing for purchasers costs of 4.30%
