A Petrol Filling Station and Convenience Store Investment Dudley Port Service Station The A461 Dudley Port Tipton West Midlands DY4 7RB 08449 02 03 04 gva.co.uk/7680
Investment Summary Prime freehold petrol filling station and convenience store together with additional undeveloped plot. Let to Somerfield Stores Limited and guaranteed by Somerfield Plc until 30 June 2029 (circa 15.25 years unexpired). Secure rental income of 229,674 per annum subject to upward only review on 1 July 2014. Offers invited in excess of 3,200,000 (Three Million Two Hundred Thousand Pounds) reflecting an attractive net initial yield of 6.78%, allowing for purchaser s costs of 5.8%. Location Dudley Port is located within the Tipton area in the Borough of Sandwell. It lies at the heart of the West Midlands conurbation approximately 1.5 miles (2.5 km) north of Dudley, 3 miles (5 km) west of West Bromwich, 4 miles (6.5 km) south east of Wolverhampton and 8 miles (13 km) north west of Birmingham City Centre. The area has excellent communication links being located off the A461 which connects to the A4123 Birmingham New Road to the south west and the A41 Black Country New Road to the north east. The A4123 and the A41 are both important dual carriageways that connect Birmingham City Centre to Junctions 1 and 2 of the M5 and on to Wolverhampton. Tipton has a resident population of 38,777 and there are estimated to be approximately 2,250,000 residents within a 12 mile (20 km) radius (2011 Census). Situation The property has extensive prominent frontage to the junction of the A461 and the A457 approximately 1 mile (1.5 km) east of Tipton town centre. The A461 is a principal route linking the A41 Black Country New Road 1 mile (1.5 km) to the north east to the A4123 1 mile (1.5 km) to the south west. The A457 is also a key route connecting Oldbury town centre 1.5 miles (2.5 km) to the south east to Tipton town centre. As such both carriageways enjoy high volumes of traffic flow. The property is situated within a mixed residential and commercial area. It benefits from an extensive customer catchment and is well positioned to benefit from high margin shop and forecourt sales.
external elevation of the store and at the rear is a dedicated loading area with canopy which is secured with pallasade fencing. The site provides extensive parking facilities with 34 marked spaces located at the front and side of the store. At the rear of the site is a dedicated valeting area offering fully automatic roll over car wash, jet wash bays and air/water/vacuum machines. The property also includes a plot of undeveloped land shown hatched blue on the plan below which forms part of the tenant s demise. This offers significant potential to enhance value by negotiating terms to take back the land and develop for high value complementary uses. Description The property comprises a Co-Operative Food/Texaco branded petrol filling station with spacious canopied forecourt and convenience store developed in 2004. The forecourt is surfaced with sectional concrete and provides four six nozzle multi product dispensers in starting gate formation and positioned on raised concrete islands. A large single storey convenience store faces the forecourt. Internally, the specification comprises ceramic tiled floor and suspended ceilings with recessed fluorescent lighting. It provides a full and diverse range of products and has extensive shelving and chilled cabinets, food counter and off licence. There is also an integrated ATM on the
Accommodation The property provides the following Gross Internal Floor areas: Sq M Sq Ft Sales Area 265.3 2,856 Ancillary (Store/Office) 136.9 1,474 Total 402.2 4,330 We calculate the site area to be approximately 0.69 hectares (1.72 acres). The land hatched blue extends to 0.22 hectares (0.55 acres). Tenure The site is held Freehold. Tenancy The property is let to Somerfield Stores Limited and guaranteed by Somerfield Plc, for a term of 25 years from 1 July 2004. The passing rent of 229,674 per annum is subject to five yearly upward only reviews to open market value. The lease is drafted on full repairing and insuring terms. Somerfield Plc changed its name to Somerfield Limited in December 2005. The company was subsequently converted to an Industrial & Provident Society in October 2010. In January 2011, Somerfield Limited transferred the whole of its stock, property and other assets, and all engagement to The Co-Operative Group Food Limited. The Co-Operative Group Food Limited is the fifth largest food retailer in the UK with 2,800 local convenience and medium sized stores, and employs circa 74,000 people. For year ending 5 January 2013, it reported a turnover of 6.245 billion and a profit before tax of 191.7 million. VAT We understand the property is elected for VAT. It is intended that the sale will be treated as a Transfer Of a Going Concern (TOGC). Proposal We are instructed by our clients to seek offers in excess of 3,200,000 (Three Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 6.78% after allowing for purchaser s costs of 5.8%. Covenant Status In March 2009, The Co-Operative Group, the UK largest mutual business with a turnover of circa 11.8 billion, completed the 1.565 billion acquisition of Somerfield Plc.
Energy Performance Certificate Further Information For further information please contact: GVA 3 Brindleyplace Birmingham B1 2JB Tel: 08449 02 03 04 Fax: 0121 609 8314 Barry Riley Direct Line: 0121 609 8268 Email: barry.riley@gva.co.uk Tom Rigg Direct Line: 0121 609 8091 Email: tom.rigg@gva.co.uk gva.co.uk/7680 GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents 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 purchases or lessors and do not constitute, nor constitute part of an offer or contract. 2.) 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 or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. For identification purposes only. March 2014.