For SaleConvenience Store Investment

12, Market Lane, Barton-upon-Humber, North Lincolnshire, DN18 5DE

Description

A stand-alone purpose built single storey convenience store with rear loading and large on-site car park.

LOCATION

Barton-upon-Humber is an attractive town located on the south bank of the Humber Estuary with a population of over 11,000. The town is strategically located next to the Humber Bridge and has become a commuter town serving Kingston upon Hull which is 6 miles to the north.

The property is located on the fringe of the town centre fronting the busy A1077, close to a variety of retail, leisure, food and beverage occupiers. The property is situated adjacent to the main bus stop in the town.

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.

TENURE

Freehold

TENANCY

The property is Let to Somerfields Stores Limited and guaranteed by Co-operative Group Limited.

The lease is for a term of 25 years with effect from the 11th December 2006, therefore expiring on 10th December 2031, providing in excess of 11 years unexpired term and secure income.

The current rent passing amounts to £87,374.56 per annum with RPI linked increases in 2021 and 2026.

COVENANT STRENGTH

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.

PRICE

OIEO £1,500,000 which would show a net initial yield of 5.5% after deducting normal purchaser’s costs.

VAT

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.

LEGAL COSTS

Each party is to be responsible for their own legal costs incurred in documenting the transaction.