Lot 5 - 68 Gainsborough Road, Crewe, Cheshire, CW2 7PJ
- Unconditional Online Auction Sale
- Guide Price* : £280,000 plus
- Commercial investment let at £23,178 p.a. subject to review in July 2022 (2% fixed uplift) and will rise to £25,581 p.a.
- Let to Martin McColl Ltd - 10 years unexpired no breaks (Recently acquired by Morrisons Group)
- Guide price reflects a 7.83% net initial yield (assuming purchasers costs at 5.6%), rising to 8.65% in July 2022.
Commercial investment let to Martin McColl Ltd (Expiry 2032) at a rent of £23,178 per annum subject to review in July 2022 (2% fixed uplift) to £25,591 per annum
Description
The property comprises a substantial two storey detached building, which is trading as a neighbourhood convenience store (McColls). The majority of the ground floor is sales, with ancillary storage at the rear, plus basement storage and a predominantly open upper first floor used for for staff and additional storage purposes.
McColls has been bought by Alliance Property Holdings part of the Morrisons Group and it is reported that they will pay off McColl's £170m debts and take on its 1,160 shops and pension schemes, with 2,000 members.
Note the property is not subject to VAT.
Location
Situated in a residential area of Crewe, close to a high concentration of mostly semi-detached and terraced housing. The location is at least 500m from other local shops, with the added benefit of being adjacent to a primary school to catch additional trade at drop off and pick up times. The town centre lies approximately 0.75mile to the east.
Crewe has a population of 75,556 in the 2011 Census and is an important station on the railway network, being a major interchange station on the West Coast Main Line. One of the main employers in the town is the Bentley car factory and there are several business parks around the town that host light industry and offices. The town benefits from close proximity to the M6 and it lies within the heart of the Cheshire countryside.
Tenure
Freehold.
Accommodation
The property has the approximately gross internal areas:
Ground Floor:
Sales - 137.75 sq. m (1,482 sq. ft)
Storage - 77.43 sq. m (833 sq. ft)
First Floor: 185.64 sq. m 1,998 sq. ft)
Basement: 46.25 sq.m (500 sq. ft)
Outside
Small rear yard.
Tenancies
The entire property is let on a Full Repairing and Insuring lease to Martin McColl Limited (Company Number: 298945) from completion with lease expiry in June 2032 and no breaks options. The current rent is £23,178 pa exclusive and is subject to review in July 2022 and 5 yearly thereafter to a fixed uplift of 2% per annum compound, so will rise to £25,591 per annum.
McColls has been bought by Alliance Property Holdings part of the Morrisons Group and it is reported that they will pay off McColl's £170m debts and take on its 1,160 shops and pension schemes, with 2,000 members.
McColl's has a network of 1,265 convenience stores and newsagents across England, Scotland and Wales. Martin McColl Limited reported turnover of £890m to November 2020 and profit before taxation of £19.3m.
EPC
Energy Asset Rating is D.
Buyers Administration Fee
There will be a Buyer's Administration Fee of £3,000 (inc VAT) payable upon exchange of contracts.Additional Information
1. The information contained within the Particulars are given in good faith, but all descriptions, statements, dimensions ( these may have come from a third party source e.g. the seller, valuation reports or historic sales particulars), references to condition and permissions for the use and occupation or other details are made without responsibility and should not be relied upon as representation of fact.
2. If a video walk through, or any other form of virtual tour, is provided whilst every effort is made to accurately give an overview of the property we cannot give any warranty concerning the nature, and condition of the property and the suitability thereof for any and all activities and use. The video, or tour, is provided to assist only and without responsibility and should not be relied upon as representation of fact, or replace all appropriate due diligence a prudent purchaser would make.
* Generally speaking Guide Prices are provided as an indication of each seller's minimum expectation, i.e. 'The Reserve'. They are not necessarily figures which a property will sell for and may change at any time prior to the auction. Virtually every property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10% above a single figure Guide.
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