Tesco InvestmentBelmont Road, Stourbridge, DY9 8AS

Description
The property comprises a former ‘Top Bell’ public house which has been sensitively converted to a convenience store. The building is two storeys, brick built with mixed fenestration and a pitched and hipped tiled roof. The land surrounding the former pub has been tarmacked to provide retail spacing for 9 vehicles. There is a service yard at the rear.

Tenure
Freehold subject to the individual occupational leases.

Tenure & Tenancy
The property is let on an overriding lease of the whole (save for one car parking space) to Tesco Stores Ltd for a term of 15 years from 10 June 2024 to 2039, with a tenant only break at year 10, at a commencing rent of £60,000 per annum. The lease is subject to 5 yearly upward only rent reviews capped at 12.5% of passing rent.

In addition to the above, a car parking space has also been let to Evyve Projects (No.2) Limited for a term of 15 years from 21 December 2023, with a tenant only break at year 10 at a commencing rent of £2,500 per annum. The rent is to be reviewed annually on each anniversary of the Term start date to increase by 2% compounded.

Covenant
Tesco Stores Limited has been given a ‘5A2’ D&B Rating and is owned by its parent company Tesco Plc and we summarise their performance for year ending 29 February 2023.

The tenant can therefore be considered of a strong undoubted covenant strength.

Evyve equally are on an aggressive rollout EV acquisition programme with an equivalent bond rating of 'BB' (Incans) and therefore can be considered a growing covenant capable of meeting their lease obligations.

Rateable Value
The property has been removed from the Rating List and is currently awaiting reassessment following the recent works and occupation by Tesco Stores Ltd.

EPC
A copy of the EPC is available upon request.

Guide Price
Unconditional offers are invited in the order of 1,025,000, reflecting a Net Initial Yield of 5.76% assuming usual purchasers costs of 6.51%.

VAT
The investment will be sold as a TOGC and will therefore be exempt from paying VAT.

Viewing
Formal viewings can be made strictly by appointment with Savills or their joints agents WTS.

Anti Money Laundering Regulations
A successful purchaser will be required to provide the appropriate information to satisfy current AML regulations when Heads of Terms are agreed.