• Freehold Convenience store investment
  • Located in Bideford Town Centre
  • Single let to Cooperative Group Ltd (£3bn net assets)
  • Current rent – £161,154 per annum
  • Rent rising annually to RPI 2-4%
  • Offers in excess of £2,525,000
  • A Net Initial Yield of 6%
  • Reversionary yield of 7.16% in 2025 and 8.3% in 2030
Coop Bideford

Location

The property is located in the centre of Bideford, one of the main commercial centres of North Devon, with a population of just under 15,000.

Situation

Mill Street runs through the heart of the town and offers pedestrianised access to the front of the property.

Description

A three story property with retail use on ground floor, basement storage with office and ancillary staff facilities on first floor. Customer access is provided on the ground floor from the front of the building, but deliveries can arrive at lower ground floor from the rear.

This makes the logistics of running the store very efficient, with no crossover for customers & deliveries on site.

Energy Performance Asset Rating

The EPC for the property is C – 54. A copy of the EPC is available on request.

3D Walk-Through of the Property



VIEW OUR 3D WALK-THROUGH

Accommodation

The property extends to an approximate GIA of 9,390 sq ft.

Sq Ft Sq M
GF Sales 4,250 395
GF Ancillary 115 11
Basement 3,175 295
First Floor 1,850 172
Total 9,390 872

Covenant

Co-operative Group Limited is the UK’s largest mutual business and has been in existence for over 150 years. The Co-operative Group Limited have a D&B rating of 5A1. The Co-operative Group Limited is the overriding parent company for the entire Co-op organisation. It is therefore considered the most robust covenant.

31/12/15 31/12/16 06/01/2018
Turnover £9,201,000,000 £9,472,000,000 £9,470,000,000
Profit Before Tax £23,000,000 -£132,000,000 £72,000,000
Net Assets £2,937,000,000 £3,241,000,000 £3,088,000,000

 

VAT

We understand that the property is elected for VAT. It is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

Proposal

We are seeking offers in excess of £2,525,000 subject to contract.

Based off the topped up rent of £161,154pa, the quoting price provides a NIY of 6%.

The investment provides a very attractive income profile as demonstrated opposite, depending on whether the annual RPI uplifts are 2%, 3% or 4% per annum.

The running yield profile opposite is based off an average rental uplift of RPI uplift of 3% per annum.

On that basis, investors returns on key dates are as follows –

2025 –7.16%

2030 –8.3%

2035 –9.63%

Year Rent + 2% pa Rent + 3% pa Rent + 4% pa Running Yield based on 3%pa
2019 £161,154 £161,154 £161,154 6.00%
2020 £164,377 £165,989 £167,600 6.18%
2021 £167,665 £170,968 £174,304 6.36%
2022 £171,018 £176,097 £181,276 6.55%
2023 £174,438 £181,380 £188,527 6.75%
2024 £177,927 £186,822 £196,068 6.95%
2025 £181,486 £192,426 £203,911 7.16%
2026 £185,115 £198,199 £212,068 7.38%
2027 £188,818 £204,145 £220,550 7.60%
2028 £192,594 £210,269 £229,372 7.83%
2029 £196,446 £216,578 £238,547 8.06%
2030 £200,375 £223,075 £248,089 8.30%
2031 £204,382 £229,767 £258,013 8.55%
2032 £208,470 £236,660 £268,333 8.81%
2033 £212,639 £243,760 £279,067 9.07%
2034 £216,892 £251,073 £290,229 9.35%
2035 £221,230 £258,605 £301,838 9.63%
£3,225,025 £3,506,967 £3,818,949

Tenure

The property is held FREEHOLD.

Tenancy

The property is let to Co-Operative Group Limited on a full repairing lease for 25 years, 7 months from 21st September 2011. Lease expiry is 13th April 2035, therefore just under 16 years remaining on the lease, with no breaks.

Current rent £157,994 per annum reviewed annually in line with RPI, collared at 2% and capped at 4% per annum. For the purpose of the sale, the vendors will top up the rent to the minimum 2% uplift, making the rent £161,154 per annum.

Asset Management

Investment Considerations

5A1 Long Income Town Centre Investment Opportunity – £2,525,000 – 6% NIY

Long Lease – C.16 Years Unexpired

Excellent Covenant Co-operative Group Ltd – £3 Billion Net Assets

Annual PRI Increases, Collar – 2% & Cap at 4%

Photo Library

Log in here to view this section | Haven't registered? Click here

Download brochure

pdficonlarge Brochure
Log in below to view this section | Haven't registered? Click here

Exeter Office

20 Southernhay West
Exeter
Devon
EX1 1PR
01392 660 000

London Office

Stratford Place
Mayfair
London
W1C 1ES
0203 770 2828

Midlands Office

5-7 High Street
Henley In Arden
West Midlands
B95 5AA
0203 770 2828