for sale newly developed retail investment...the subject property is located on sandy lane (a1056),...

sw.co.ukTYNESIDE AUTOPARC SANDY LANE NORTH GOSFORTH NEWCASTLE UPON TYNE NE13 6PE

FOR SALENEWLY DEVELOPED RETAIL INVESTMENT

Prominent Site Location

Freehold Interest

Multi-let Drive Thru and Petrol Station investment opportunity

Current Passing Rent £190,000 per annum

Subject to Contract

Investment Summary

• Rare opportunity to acquire a well let brand new petrol station with Greggs drive thru

• Prominent position fronting onto the A1056 and close to the roundabout junction with the A189

• Purpose built filling station of 7,007 sq ft (650.95 sq m) on a site of 1.46 acres (0.59 hectares).

• Includes a drive thru sub-let to Greggs.

• Let to the Kay Group (UK) Limited by way of a 25 year FRI lease at a rent of £190,000 per annum.

• Tenant only break option at the 15th anniversary of the commencement of the lease.

• To the year ending 31/08/18 The Kay Group reported a turnover of £108.84 million, a net worth of

£5.44 million and Creditsafe give them a rating of 69 (low risk).

• We are seeking offers in the region of £3,200,000 reflecting a net initial yield of 5.58% after allowance

for purchase costs of 6.47%.

TYNESIDE AUTOPARC SANDY LANE NORTH GOSFORTH NEWCASTLE UPON TYNE NE13 6PE

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Location

Newcastle Upon Tyne is the largest city in the North East of England and is the administrative centrefor the Tyne and Wear District with a resident population of circa 305,000 and a wider urbanpopulation of circa 1 million.

Major employers in the city include Virgin Money, Sage Group, Barclays Bank, Qbix Tax, DACBeachcroft Solicitors, BskyB and Proctor and Gamble.

Newcastle has two Universities, Newcastle and Northumbria which between them have over 50,000students, with the former being a member of the Russell Group.

Newcastle benefits from excellent communication links. The city is served by the A167(M) CentralMotorway, which links to the A1 to the north west and the A184 that joins with the A1 to the south.The city is also served by the A1058 that leads to the eastern coast.

Newcastle train station lies on the east coast mainline and provides regular services to London with afastest journey time of 2 hours and 50 minutes. Newcastle International Airport is 7 miles north eastof the city centre and is one of the top ten airports in the UK handling more than 4.6 millionpassenger movements a year to over 80 destinations.

Newcastle is 13 miles south east of Sunderland, 98 miles north of Leeds, 120 miles south west ofEdinburgh and 289 miles north of London.

Situation

The subject property is located on Sandy Lane (A1056), close to the roundabout junction with the

A189, 6 miles north of Newcastle city centre, 22 miles north west of Sunderland and 24 miles north

of Durham. The property has a prominent frontage onto Sandy Lane, a major arterial route to the

north of the City and in close proximity to the A1, which provides direct access to Edinburgh to the

north and the A1(M) and the wider motorway network to the south.

Nearby occupiers include Tyneside Autoparc, United British Caravans and Practical Driving Test

Centre.

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Description

The site has been developed by the landlords to provide a new purpose built petrol filling station includingpumps and tanks, beneath a canopy, with a shop and a drive thru. The total net lettable accommodationwill be approximately:

Convenience store 494.00 sq m (5,317 sq ft).

Drive thru 185.80 sq m (2,000 sq ft)

Total 679.80 sq m (7,317 sq ft)

There are 8 high volume fuel pumps along with 5 jet wash bays, 2 vacuum points and there is an outsideseating area for the drive thru. The site benefits from 60 external car spaces.

Site

The property lies on a relatively level and regularly shaped site of 1.46 acres (0.59 hectares).


Tenancy

The site was pre-let to the Kay Group (UK) Limited by way of a 25 year full repairing and insuringlease subject to a tenant only break option at the 15th anniversary of the commencement of the leasein 10 July 2019. The passing rent is £190,000 per annum exclusive. Rent reviews are 5 yearly inline with the increase in RPI with a maximum increase of 10% and a minimum increase of 5% andare upward only. The tenant benefits from 3 months rent free from lease commencement which willbe topped up by the vendor.

The Kay Group have in turn sub-let the drive thru to Greggs.

Covenant

We have carried out a credit search on the tenants with Creditsafe (figures in brackets denote theprevious years accounts) To the year ending 31/08/18 they reported a turnover of £108.84 million(£96.44 million), a pre-tax profit of £2.725 million (£2.57 million) and a net worth of £5.44 million((£10.78 million). They were incorporated in March 1985 and Creditsafe give them a rating of 69 outof 100 (low risk).

They are one of the North West’s leading petrol retailers operating through 19 developed highvolume 24hr petrol retail outlets, all with convenience stores and car washing facilities. Shell, BP,Texaco and Spar are the Company’s principle suppliers along with in store retailing partners Greggs,Subway and Costa.


Energy Performance Certificate

An EPC has been commissioned and will be available upon request.

Money Laundering

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.

Asking Price

The benefit of our clients freehold interest is available at an asking price of £3.2 million reflecting

a net initial yield of 5.58% taking into account reasonable purchasers costs at 6.47%.

Misrepresentation Act 1967: Messrs Sanderson Weatherall LLP for itself and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1) These

particulars do not constitute any part of an offer or contract; 2) None of the statements contained in these particulars as to the properties are to be relied on as statements of

representations of fact; 3) Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars;

4) The vendor(s) or lessor(s) do not make or give and neither Messrs Sanderson Weatherall LLP nor any person in their employment has any authority to make or give any

representation or warranty whatsoever in relation to this property; 5) None of the building’s services or service installations (whether these be the specific responsibility of the

freeholder, lessor or lessee) have been tested and are not warranted to be in working order. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of

VAT. Consumer Protection from Unfair Trading Regulations 2008 and Business Protection from Misleading Marketing Regulations 2008; Every reasonable effort has been made by

Sanderson Weatherall to ensure accuracy and to check the facts contained in these particulars are complete. Interested parties are strongly advised to take appropriate steps to

verify by independent inspection or enquiry all information for themselves and to take appropriate professional advice.

Sanderson Weatherall LLP Registered in England company number OC 344 770 Registered Office 6th floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL

sw.co.uk

For further information please contact the Agents:

Kevin McGorie

0191 269 0174

[email protected]

Mark Convery

0191 269 0103

[email protected]

Charlotte Marshall

0191 269 0132

[email protected]

David Ferris

0117 338 1817

[email protected]

Sanderson WeatherallCentral Square South

Orchard StreetNewcastle upon Tyne

NE1 3AZ

December 2019

mailto:[email protected]

for sale newly developed retail investment...the subject property is located on sandy lane (a1056),...

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