Well Secured Convenience Store Investment
115-119 Main Street | Neilston | Glasgow | G78 3NH
offers in excess of
Closing date for Offers: 12 Noon Wednesday 4 December 2019
Well-let convenience store
Prominent main road fronted property
Let to Wm Morrisons Supermarket PLC (Net Assets £4,631 million)
Unexpired lease term of approximately 9.5 years
Current rent of £27,280 per annum reflecting £12.57psf
VAT Free Investment
Offers in excess of £375,000
Net initial yield 7.00%
Neilston is a commuter village with a resident population of just over 5,000 people. It is located in East Renfrewshire in the Levern Valley, 3.2 km (2 miles) southwest of Barrhead, and 6.1 km (3.8 miles) south of Paisley, and to the southwest of the Greater Glasgow conurbation. Neilston continues to grow as a commuter village with expansion continuing due to new housing developments.
The subjects occupy a prominent site on the southern side of Main Street, close to it’s junction with Bank Street, which is the main vehicular route within the town and provides direct links to the A736 Glasgow to Irvine road. The immediately surrounding area is mixed commercial and residential in nature. The local train station offers regular services into Glasgow Central, Ayrshire and beyond.
The property comprises a ground floor retail unit together with a self-contained first floor residential flat contained within a two storey detached property with single story additions. The building is of traditional rendered brick construction with asphalt covered flat roof.
The ground floor has been fully fitted for retail use in the occupiers’ corporate style.
The first floor flat, which has its own dedicated entrance, provides three apartments, kitchen and bathroom.
We have been provided with the following floor areas:
|Retail Area (Net Internal Area)|
|Sales||122.99 sq.m||1324 sq.ft|
|Stores/staff area||78.63 sq.m||846 sq.ft|
|Total||200.62 sq.m||2170 sq.ft|
|Residential Flat (Gross Internal Area)|
|123.44 sq.m||1329 sq.ft|
The property is held on a heritable title (Scottish Equivalent to English Freehold)
The entire property is let to Wm Morrison Supermarkets PLC on a full repairing and insuring lease for a term of approximately 66 years from 4 April 1966, expiring on 15 May 2029 at a rent of £27,280 per annum. There are no further rent reviews.
Based on our analysis, the passing rent equates to an overall rate of £12.57psf on the ground floor (excluding any value attributed to the first floor).
The property is sub-let on a co-terminus lease to Alldays Stores Limited, a wholly owned subsidiary of the Co-operative Group Limited.
Wm Morrison Supermarkets PLC (Company Number 00358949) have reported the following figures:
|Year Ending||3rd March 2019||4th February 2018|
|Pre-Tax Profits||£320 m||£374m|
With almost 500 stores throughout the UK, Morrisons are one of the UK’s leading supermarket retailers. Morrisons employs 110,000 employees and serves around 11 million customers each week. The company is listed on the London Stock Exchange and is part of the FTSE 100 Index of companies.
For further information see the Downloads section of the website or visit www.morrisons-corporate.com.
The property has not been elected for VAT and accordingly VAT will not be payable on the purchase price.
We are seeking offers in excess of £375,000 (Three Hundred and Seventy Five Thousand Pounds) reflecting a net initial yield of 7.00% after allowing for standard purchasers costs of 3.59%.
Please note that a purchaser will be recharged the costs of the searches that are provided in the data room.
Let to Wm Morrisons PLC – Net Assets £4,631m;
Unexpired lease term of 9.5 years – no breaks;
Offers in excess of £375,000, subject to contract;
VAT free investment;
Attractive net initial yield of 7.00%
|BTO Solicitors LLP||+44 (0) 141 221 8012|