Convenience Store Investment Opportunity

 

SUMMARY

INVESTMENT SUMMARY

        • Well located convenience store in an affluent and popular Surrey village.
        • Situated within a busy and prominent retail parade, boasting an excellent return frontage.
        • Let to Co-operative Foodstores Ltd until June 2026.
        • 5 yearly RPI linked rent reviews, compounded annually and subject to a collar and cap of 1.50% – 3.00%. Next review 2021.
        • Current rent of £80,000 per annum. Reflecting a low overall passing rent of £17.63 psf.
        • Ground floor retail accommodation totalling 4,592 sq ft (427.0 sq m), with the added benefit of rear loading.
        • Long Leasehold for 250 years from January 2011 at peppercorn rent, with an option to acquire the freehold.

LOCATION

LOCATION

Byfleet is an affluent, accessible and prosperous Surrey commuter town some 18 miles (29 km) west of Central London located to the east of Woking and south of Weybridge. The area is home to many well-known commercial employers including BAE Systems, M&S, Mercedes Benz, Proctor & Gamble and John Lewis. The Byfleet area has some of the most sought after residential property in the UK.

Byfleet benefits from excellent road access with the A3 within 3 miles (5km) providing access to the M25 and National Motorway network thereon in. There are also frequent rail services to London Waterloo (32 mins journey time) and Clapham Junction (23 minutes).

SITUATION

SITUATION

The subject property is situated within the Vanners Parade, a local shopping destination with accessible off street customer parking and excellent road frontage.

  • Other retailers within the parade include C&E Electrical Wholesale and a local Post Office with the surrounding area predominantly residential houses.
  • DESCRIPTION


    DESCRIPTION

    The property forms part of a small terrace of mixed use buildings, with the subject property providing recently refurbished ground floor convenience store retail accommodation with the benefit of rear access and residential accommodation over first and second floors which have been sold on long leases.

    TENANCY

    TENANCY

    The property is let to Co-Operative Foodstores Limited, on assignment from Booker Retail Partners (GB) Limited, for a term of 15 years from 24th June 2011 until 23rd June 2026 at a passing rent of £80,000 per annum.
    The lease is subject to 5 yearly upward only rent reviews to the higher of open market value or RPI (Retail Price Index) linked collared at 1.50% and capped at 3.00% compounded annually.

    TENURE

    Long Leasehold for a term of 250 years from 1st January 2011 at a peppercorn rent, with an option to acquire the freehold.

    COVENANT

    Co-Operative Foodstores Ltd

    The Co-Op Group has its origins in the co-operative consumer societies started by the Rochdale Pioneers. In 1863, independent co-op societies formed The Co-operative Wholesale Society (CWS).

    They are now one of the world’s largest consumer co-operatives, owned by millions of its members. They are currently the UK’s fifth biggest food retailer with more than 2,500 local, convenience and medium-sized stores. The group currently employs almost 70,000 people.

    Booker Retail Partners (GB) Ltd

    Booker Retail Partners (GB) Ltd form part of the Booker Group Plc. In January 2017, it was announced that the supermarket retailer Tesco had agreed to purchase the company for £3.7 billion. It was confirmed on 5 March 2018 that Tesco had completed its takeover of Booker Group Plc.

     

    IMAGES

    PHOTO GALLERY

    PROPOSAL

    VAT

    The property is elected for VAT and it is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).

    PRICE

    Offers in excess of £1,260,000 (One Million, Two Hundred and Sixty Thousand Pounds), subject to contract and exclusive of VAT
    A purchase at this level reflects a Net Initial Yield of 6.00%, assuming normal purchaser’s costs of 5.97%.

    MISREPRESENTATION ACT 1997 & DECLARATION

    Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that:
    i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract.
    ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.
    iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property.

    BROCHURE

    BROCHURE

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