Tesco Investment, Burgh Old Road, Skegness, PE25 2LJ | Property for sale | Savills
4,000 sq ft(371.61 sq m)
£1,400,000(693,776 OMR)

Tesco InvestmentBurgh Old Road, Skegness, PE25 2LJ

  • Freehold
Retail
4,000 sq ft (371.61 sq m)

Key features

  • 15-year term with no breaks
  • New build standalone convenience store recently opened.
  • Freehold interest subject to new FRI lease to Tesco Stores Ltd
  • Commencing rent of £78,000 per annum
  • 5 yearly CPI rent reviews (1% & 4% collar & cap)
  • Guide Price £1.4 million representing a 5.25% NIY
  • 4,000 sq ft with 12 parking spaces

Tesco Investment: 15 years with no breaks, rent of £78,000 per annum, guide price of £1.4 million, representing a 5.25% NIY.

About this property

  • Description
    The property has been constructed in accordance with the planning consent granted by East Lindsey District Council under reference S/153/01831/21 on 9th May 2022.

    The scheme has been designed to reflect the characteristics of the location and provide the local community with a vital amenity. Tesco moved into the property on 18th October 2024.

    The store spans 4,000 sq. ft and includes 12 parking spaces

    Tenancy
    The property is let on a new Full Repairing and Insuring lease to Tesco for a term of 15 years term certain, with no breaks, at a commencing rent of £78,000 per annum. The lease includes 5 yearly rent reviews in line with the Consumer Price Index (CPI), subject to a collar and cap of 1% and 4%.The rent at each review is compounded annually.

    Tenure
    The freehold interest is being sold subject to the new tenancy.

    Rateable value
    Awaiting assessment.

    EPC
    A-13

    Price
    The lease to Tesco is now completed. This investment is available at a guide price of £1.4m representing a NIY of 5.25%.

    VAT
    The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC.

    Anti-money laundering regulations
    In accordance with Anti-Money Laundering Regulations, the preferred purchaser will be required to provide identification and proof of address, prior to exchange.

    Viewings
    For a formal viewing, strictly by appointment with Savills.

Local information

  • The site is located on Burgh Old Road in Skegness, PE25 2LJ. This road is situated in the western part of the town, within a mainly residential area. Skegness, located approximately 64 km (40 miles) east of Lincoln, 162 km (100 miles) southeast of Sheffield, and 228 km (142 miles) north of London, benefits from excellent road connectivity. The A52 provides direct access to the town, linking it to Grantham and Nottingham to the west. Additionally, the A158 connects Skegness to Lincoln, situated 64 km (40 miles) to the west.
  • The new convenience store is positioned adjacent to the Welcome Inn public house (Punch Tavern Tenancy). Also, Skegness Fields Caravan Park is within walking distance of the store. Access and servicing is via the east off Burgh Old Road.