A purpose built two storey shop property occupying a corner location with prominent frontage to St Peter’s Avenue, and benefitting from rear servicing.
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.
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.
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.
OIEO £1,625,000 which would show a net initial yield of 5.5% after deducting normal purchaser’s costs.
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.
Each party is to be responsible for their own legal costs incurred in documenting the transaction.