For Sale High Street, Shirehampton, Bristol, BS11 0DE Convenience Store and Petrol Filling Station Investment Opportunity
Investment Summary Highly prominent convenience store and petrol filling station on a corner site on Shirehampton High Street Shirehampton is a busy residential suburb of Bristol The property was fully redeveloped in 2007 Guaranteed by the strong covenant of Co-operative Group Food Limited for 8.6 years unexpired Store totals 3,577 sq ft GIA Current passing rent of 126,824 per annum Annual fixed rental increases giving guaranteed rental growth throughout the term Seeking offers in excess of 1,910,000 (One Million Nine Hundred and Ten Thousand Pounds) reflecting a net initial yield of 6.25%. Shirehampton Service Station, Bristol 02
Location, Situation and Description Location / Situation Description Shirehampton is a major residential suburb of Bristol and is situated approximately 5 miles north west of the city centre and 1 mile south of junction 18 of the M5. It is a predominantly residential area. The property was fully redeveloped in 2007 and provides a modern convenience store and petrol filling station. The property occupies a prominent corner site on Shirehampton High Street (B4054). It is 0.5 miles from the A4 Portway, which is one of the major arterial routes into Bristol city centre. Shirehampton High Street has a mixture of local retailers and national retailers including Boots, Lloyds TSB and Natwest Bank. The property is very well located in an established secondary retail area with a high volume of passing traffic. There is also a train station linking Shirehampton to Bristol city centre. Shirehampton Service Station, Bristol 03 The site is approximately 0.35 acres with a frontage of circa 30 metres to Shirehampton High Street and 65 metres to Pembroke Road. The convenience store totals 3,577 ft² (GIA) and is built using a steel frame construction with profiled steel cladding, under a flat roof. There are seven car parking spaces. There are pavement crossovers to both the High Street and Pembroke Road. The petrol filling station is covered by a canopy and has six pump islands. It is concrete surfaced with outlying tarmac areas. The site has an off licence and trades 24 hours a day, 365 days a year. *Red Line plan for indicative purposes only.
Tenancy Information Tenancy The property is let to Co-operative Foodstores Ltd, with a guarantee from Co-operative Group Food Ltd. The lease is on FRI terms for 20 years from 21 June 2007 and expires on 20 June 2027, giving an unexpired lease term of 8.6 years. The lease is contracted outside of Sections 24-28 of the Landlord & Tenant Act 1954. The tenant has an option to renew for 15 or 20 years, following expiry of the current term. The lease has annual rent reviews which are fixed at 2.00% per annum. The current rent passing is 126,824 per annum. The rent at the expiry of the lease will be 151,566 per annum and is anticipated to offer reversionary potential on lease renewal or reletting. Covenant Co-operative Foodstores Ltd and Co-operative Group Food Limited are subsidiaries of the Cooperative Group Ltd, one of the largest retailers in the UK, operating in a range of areas including food, clothing, travel insurance, banking and funeral services. In 2018 Co-op plan to open a further 100 new food stores as part of 160m investment in new openings and refits, creating an estimated 1,600 jobs. Co-operative Group Food Ltd reported the following recent financial results: 06/01/18 31/12/16 Turnover 7,159,600,000 6,933,400,000 Pre-tax profit 195,400,000 148,200,000 Total Equity 1,875,100,000 1,805,400,000 Environmental Shirehampton Service Station, Bristol 04 The site was fully redeveloped in 2007 and was subject to environmental surveys - copies are available on request. Tenure Freehold. EPC The EPC rating is B. A copy of the certificate can be provided on request. VAT The property has been elected for VAT and this will be payable on the purchase price or dealt with by way of a TOGC.
Forecourt Investment Market Shirehampton Service Station, Bristol 05 Forecourt Investment Sector The sector continues to grow more mainstream, appealing to a variety of institutional investors. There were circa 75 million worth of transactions in 2017, representing a 40% increase on 2016. Values have increased 73% since the bottom of the market in 2011. Prime yields have dropped below 5% for 20 year leases with built in rental growth to a strong covenant. Date Property Tenant Term Rent Review Value Yield Investment Rationale Freehold Highly prominent roadside location Located in a busy residential suburb of Bristol Income secured to the excellent covenant of Co-operative Group Food Limited Unexpired term of 8.6 years Guaranteed rental growth through fixed annual uplifts at 2% per annum. Q2 2018 Applegreen Petrol Station, Crawley Applegreen 15 years RPI linked 3 yearly, capped at 3.5% 3.82m 5.30% Q4 2017 Hengrove Way, Bristol Rontec Roadside Services 24 years 2% yearly 3.91m 4.85%
Contact and Viewing Arrangements Shirehampton Service Station, Bristol 06 Proposal We are instructed to seek offers in excess of 1,910,000 (One Million Nine Hundred and Ten Thousand Pounds) reflecting a net initial yield of 6.25% assuming purchasers costs at 6.25%. Viewing Arrangements For further information or to arrange an inspection please contact the sole agents. Alder King Property Consultants Pembroke House 15 Pembroke Road Clifton Bristol BS8 3BA Important: Alder King for themselves and for the vendors of this property, whose agents they are, give notice that: 1. The particulars contained herein are for guidance purposes only and do not constitute either part or whole of an offer or contract. 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation 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, and must satisfy themselves as to their correctness. 3. No person in the employment of Alder King has any authority to make or give any representations or warranties whatsoever in relation to these properties. 4. No responsibility can be accepted for expenses incurred by intending purchasers in inspecting and considering the properties which are offered. Under the Control of Asbestos Regulations 2006 (CAR 2006), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAR 2006 is an offence and could adversely affect the value of the property. The detection and management of asbestos and asbestos related compounds is beyond the scope of our expertise and does not form part of the services that we have agreed to provide in respect of the property. Accordingly: 1. Alder King do not accept any responsibility for, and you should not place any reliance on us in respect of, the detection and/or management of any asbestos and/or asbestos related compounds contained in the property. 2. We strongly recommend that you obtain advice from specialist environmental consultants in respect of asbestos related issues. Oli Stretton Lucy Costain 0117 317 1121 0117 317 1108 ostretton@alderking.com lcostain@alderking.com SUBJECT TO CONTRACT & EXCLUSIVE OF VAT OJS/LC/October2018 www.alderking.com