roadside investment opportunity with guaranteed...

Roadside Investment Opportunity with Guaranteed Rental Increases

McColl’s | Norwich Road | Roughton | Norfolk | NR11 8SJ

£1,820,000 subject to contract

6% Net Initial Yield

SUMMARY

Page 5


Petrol Filling Station & Convenience Store

Let to Martin McColl Limited

20 year lease from April 2011; 14 years term certain

Highly secure income – SF £134,740,000

Guaranteed rental increases throughout the lease

No VAT

Offers in excess of £1,820,000 subject to contract

6.0% net initial yield

Guaranteed reversionary yields;

April 2021 6.62%

April 2026 7.31%

LOCATION

Roughton is an attractive village located in the North Norfolkcountryside, approximately 5 km (3 miles) south of Cromer, 30 km(19 miles) north of Norwich and 50 km (31 miles) north-west ofGreat Yarmouth.

Roughton sits on the A140 Norwich Road which provides easyaccess to Norwich which is the administrative centre of Norfolk. Thepopular seaside town of Cromer is a renowned English holidaydestination. The town has benefitted from a programme ofextensive regeneration and boasts an attractive pier, promenadeand sea front.

The nearest railway station is at Roughton Road for the Bittern Line,which runs between Cromer, Norwich and Sheringham. The closestairport is Norwich International Airport which is just 25 km (15.7miles) south and there are also regular bus services to Cromer,Norwich and the surrounding towns and villages.

Page 6


SITUATION

The property is situated in a prominent position in the centre ofRoughton fronting the A140 Norwich Road close to a roundaboutand the junction of Thorpe Market Road. Roughton has anapproximate population of 1,000 and benefits from a number oflocal amenities including a primary school, a village hall, anattractive public house, a play area, a fishing lake and a windmill.

DESCRIPTION

The property is a Petrol Filling Station together with a single storeyconvenience store which have been branded in the tenants’corporate image.

The property operates 24 hours a day, 7 days a week and as well asoffering fuel other services provided include a Post Office, NationalLottery, Paypoint services and a Cashpoint as well as food, drinksand confectionary.

Page 8


SITE

We estimate the site area to be approximately 0.13 hectares (0.325acres).

ACCOMMODATION

We are advised the property comprises the following floor areas;

Convenience Store 156.54 sq m 1,685 sq ft

Ancillary 41.43 sq m 446 sq ft

Total 197.97 sq m 2,131 sq ft


TENURE

Freehold.

TENANCY

The property is let Martin McColl Limited, on a Full Repairing and Insuring lease for a term of 20 years from and including 12th April 2011 and expiring on 11th April 2031, providing 14 years unexpired lease term with no breaks.

The current passing rent is £115,928 per annum which is guaranteed to increase in 2021 and in April 2026 as follows;

12th April 2021 - £127,994 per annum

12th April 2026 - £141,316 per annum

COVENANT

The property is well secured to Martin McColl Limited (No. 298945) which has reported the following figures;

29th November 2015 30th November 2014

Turnover £489,336,000 £462,850,000

Pre-Tax Profit £ 22,229,000 £ 27,947,000

£134,740,000 £117,307,000

McColl’s is a leading neighbourhood retailer operating a total estateof 1,375 convenience stores and newsagents. The company is asubsidiary of McColl’s Retail Group plc, a company listed on theLondon Stock Exchange since 2014.

The company has reported revenue growth for six successive years.In July 2016 McColls announced they would acquire 298 quality,profitable convenience stores from the Co-Op for £117m in cashwhich it described as a transformational acquisition for thecompany. The company expects the new stores to increase totalsales by a third and increase EBITDA by circa 40%. Having receivedclearance from the Competition and Markets Authority the processof converting the stores has begun and completion of the

Page 13


programme is due by August 2017.

For further information visit www.mccolls.co.uk.

Shareholders’ Funds

INVESTMENT CONSIDERATIONS

Page 17


PROPOSAL

We are instructed to seek a figure in excess of £1,820,000 (One Million, Eight Hundred and Twenty Thousand Pounds, subject to contract, reflecting a net initial yield of 6.0%, assuming standard purchaser’s costs of 6.22%.

A purchase at the quoting price would provide an investor with the following guaranteed return on income throughout the lease;

April 2021 - 6.62%

April 2026 - 7.31%

VAT

The Seller has not opted to tax. Therefore, VAT will not beapplicable to the sale.

1. An opportunity to acquire a roadside investment opportunitywith guaranteed rental increases;

2. The property is let to the highly secure covenant of MartinMcColl Limited;

3. Martin McColl Limited has posted Turnover of £489,336,000,Pre-Tax Profits of £22,229,000 and Shareholders’ Funds of£134,790,000 in its most recent financial accounts;

4. 14 years unexpired with no breaks;

5. Prominent property fronting the A140 Norwich Road;

6. VAT free investment;

7. A purchase at the asking price will provide an investor with anattractive net initial yield and attractive reversionary yieldsduring the course of the lease.


Page 17

Alex Green [email protected] +44 (0) 20 7434 8780

Toby Leaman [email protected] +44 (0) 20 74348783

CONTACT US

Singer Vielle +44 (0) 207 935 7200

Neil Singer [email protected] +44 (0) 203 478 9120

Dale Henry [email protected] +44 (0) 203 701 1356

Richard Wolfryd [email protected] +44 (0) 203 701 1353

Faye Langoulant [email protected] +44 (0) 203 478 9122

Louanne Malan [email protected] +44 (0) 203 701 1386

JOINT AGENT

VENDORS SOLICITOR

Fladgate LLP

Richard Kaufman [email protected] +44 (0) 20 3036 7204

Wing Tang [email protected] +44 (0) 20 3036 7111


SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

Misrepresentation Act 1967

Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:

1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract

2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but

any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of

each of them.

3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.

4. All maps are for identification purposes only and should not be relied upon for accuracy.

5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.

Finance Act 1989

Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

Property Misdescriptions Act 1991

These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment. Concerning the Properties listed and/or

appearing on the Site:

1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Properties on the

Site.

2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating to any Property listed on this Site or if any Property has been withdrawn from

sale or lease nor shall we be responsible for any inaccurate dimensions of any Properties or price listed.

3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or listed on this Site. Such

enquiries, purchase or leasing can only be made and permitted strictly subject to the terms and conditions set out below.

4. We do not accept responsibility or liability for the completeness or accuracy of information appearing on this Site which is provided by the Vendors or Lessors of the Property

concerned who are solely responsible for such information.

5. Whilst we believe that the Properties listed are available for purchase or lease we make no guarantee that this is the case or that they have not been withdrawn by the Vendor or

Lessor of the same. All Properties appearing or listed on the Site are subject to changes, errors or omissions. We have not verified the accuracy of the information relating to the

Properties or any dimensions which have been given by the Vendors or Lessors.

6. All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.

roadside investment opportunity with guaranteed...

Documents