Description
The commercial unit along with flats above are being constructed on the former Tern Inn car park. The vendor is in the process of building the accommodation in accordance with the planning permission to provide a 3,896 sq. ft (362 sq. m) convenience store with 9 flats arranged over the first and second floors. The convenience store benefits from 15 designated parking spaces and servicing solution.

Planning
The development comprises the erection of a convenience store and 9 residential flats above, including associated access and parking, as detailed in planning application P21/06188/F.

Tenure
Long leasehold (999 at a peppercorn rent) interest.

Tenancy
The ground floor is to be let to The Co-operative Group Food Ltd at a commencing rent of £65,000 per annum. The lease is drawn on a 15 year term with tenant only break at year 10. The lease is subject to 6 months rent free and reviews are 5 yearly in accordance with CPI, compounded annually at a collar of 1% and cap of 3%.

We are of the opinion that the rent per sq. ft is below current market levels and therefore provides investors with comfort of a very sustainable and attractive passing rent.

Covenant
The Co-operative Group Food Ltd (Company Number: 26715R) is the UK’s 5th largest food retailer and a wholly owned subsidiary of The Co-operative Group Ltd which was established in 1844 and now operates 4,500 outlets with approximately 90,000 employees and an annual turnover in the order of £10.50 billion.

The tenant is therefore considered an undoubted covenant capable of meeting their lease obligations.

Guide Price
£1,200,000, representing a 5.11% NIY.

EPC
The site is currently under construction and therefore an EPC not available.

VAT
The sale price is exclusive of any VAT which, if applicable, will be in addition at the appropriate rate. It is anticipated that the sale will be treated as a TOGC and therefore VAT will be wavered.

Viewing
External viewings are advised in the first instance. A more formal viewing can be arranged by appointment with Savills.

AML
In accordance with anti-money laundering regulations, the successful purchaser will be required to provide identification documents upon request and without delay.