Highly Secure Retail Investment
73-75 Murray Street | Montrose | DD10 8JZ
OFFERS IN EXCESS OF
To be sold by Best Offers - by noon on Tuesday 3rd July 2018
Let to Bestway National Chemists Limited t/a Well
Highly secure income – Shareholders’ Funds £161 million
New 15 year lease from February 2018 – no breaks
Unit has traded as a pharmacy for over 20 years
5 yearly rent reviews to CPI – no cap or collar
No VAT on purchase price
Offers in excess of £240,000, subject to contract
Net Initial yield 7.08%
Montrose is an attractive traditional Scottish market town situated in the former Royal Burgh of Angus on the River Esk coastline located approximately 56 km (35 miles) south of Aberdeen and 48 km (30 miles) north of Dundee along the A92 Aberdeen to Dundee
The town lies on the main East Coast National Rail Network, linking London and Aberdeen. The closest major airports are Aberdeen Airport and Dundee Airport which lie approximately 73 km (46 miles) and 51 km (32 miles) from Montrose respectively.
Montrose is an important service and employment centre for the north east of Scotland with a commercial port and employers in the town include GlaxoSmithKline and GE Oil & Gas. As well as being an attractive place to live, it is also a popular destination for visitors and tourists.
The property occupies a main road location fronting Murray Street, which is one of the principal routes leading into the town centre. Murray Street feeds into High Street and the subjects are approximately 2 minutes’ walk from the prime retailing pitch within the town. The immediately surrounding properties are occupied by a variety of local traders including Milro Sports, Newsagent and Montrose Gun & Tackle.
The shop comprises the ground floor of a 3 storey mid-terraced building. There are residential flats on the upper floors which are in separate ownership. The unit has a large double frontage with central entrance doors and corporate display fascia. Internally the shop has a modern shop-fit with linoleum floor coverings and suspended ceilings throughout.
There is an open plan sales area to the front with consulting room and rear storage area with staffroom and toilets.
We calculate the property to have the following net internal floor areas:-
|Sales Area||59.35 sq m (639 sq ft)|
|Rear Staff/storage||29.29 sq m (315 sq ft)|
|Total||88.64 sq m (954 sq ft)|
|ITZA||74.00 sq m (797 sq ft)|
Heritable (Scottish equivalent of English freehold).
The property is let to Bestway National Chemists limited (t/a Well) on a new Full Repairing and Insuring lease for a period of 15 years with effect from 4th February 2018. There is provision for 5 yearly upwards only rent reviews to CPI with no cap or collar on the rent.
The initial rent is £17,500 per annum which equates to a rent of £21.95/sq ft
Bestway National Chemists Limited (Co No 09225457) has reported the following trading figures;
|30th June 2017||30th June 2016|
|Pre-Tax Profit||£ 17,678,000||£ 18,421,000|
Bestway National Chemists Ltd trades as Well Pharmacy and was formerly the Co-operative Pharmacy which was acquired by Bestway from the Co-operative Group in October 2014, in a deal worth £620 million.
As of October 2015, the Co-operative pharmacy brand was officially retired and all 794 Co-operative pharmacies relaunched as ‘Well’. Bestway is a family-owned business that prides itself on being at the heart of local communities. It owns the chain of Best-one convenience stores, and has committed to invest £200m into Well.
Well are now the country’s largest independent pharmacy chain, serving 1.3 million customers every week and dispensing 74 million prescriptions each year and are the third largest pharmacy chain overall across the UK.
For further information please visit www.bestwaygroup.co.uk.
The property is not presently opted to tax therefore VAT will not be payable on the purchase price.
We are instructed to seek offers in excess of £240,000 (Two hundred and forty thousand pounds), subject to contract, which reflects a net initial yield of 7.08%, after allowing for purchasers costs of 2.92%.
Highly secure investment – net assets in excess of £161 million;
Long lease with no breaks;
Rental increases every 5 years;
Ideal lot size for private investors;
VAT free investment.
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