CO-OPERATIVE FOOD CONVENIENCE STORE AND PETROL FILLING STATION
CROSS HILLOCK SERVICE STATION, 563 MANCHESTER ROAD ASTLEY, TYLDESLEY, MANCHESTER, M29 7BQ
EXCEPTIONALLY SECURE BRAND NEW 25 YEAR LEASE BENEFITTING FROM FIXED ANNUAL INCREASES Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 2
INVESTMENT SUMMARY t Located in the heart of Astley, a well-established commuter suburb of Greater Manchester just 8 miles north west of Manchester City Centre. t A brand-new, state of the art, substantial 4,209 sq ft convenience store and petrol filling station (due to PC in November 2020) situated on a highly prominent position fronting the southern side of Manchester Road, the main car route through Astley towards Manchester City Centre. t Large residential catchment surrounding the property whose primary form of transport is by car. t Site area of approximately 0.54 acres (0.21 hectares) t The property will be let in its entirety upon completion to Co-operative Food Stores Limited (guaranteed by Co-operative Group Limited). t Lease term of 25 years with a tenant’s option to break on the 20th anniversary providing 20 years term certain. t Lease benefits from particularly favourable alienation clause to the landlord (more information can be provided upon request). t Topped up rent of £209,100 per annum until 2021. t Lease benefits from fixed annual increases of 2.5% per annum until expiry. t Freehold t Offers in excess of £4,361,000 (FOUR MILLION THREE HUNDRED AND SIXTY-ONE THOUSAND POUNDS) subject to contract and exclusive of VAT. t Net Initial yield of 4.50%, reversionary yield of 5.00% by 2025 and an equivalent yield of 6.32% after allowance for purchaser’s costs of 6.56% Astley’s Significant Residential Catchment
Astley Park Industrial Estate
Manchester Road (A572) (7.9 Miles to Manchester City Centre)
A580 Towards Manchester Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 4
LOCATION Large residential catchment surrounding Astley is an established commuter suburb located in Greater Manchester, approximately 2 miles (3.21km) east of Leigh, 8 miles (12.87 km) south east of Wigan, 10 miles (16km) the property whose primary form of south of Bolton and 7.9 miles (12.71km) north west of Manchester City Centre. Road communications in Astley are excellent with the A580 running through the suburb transport is by car. linking with junction 13 of the M60 motorway and connecting directly to Manchester City Centre. The A580 also runs towards the west connecting to junction 23 of the M6 motorway providing connections to Wigan and Liverpool. Astley benefits from strong bus and rail connections with bus routes to Tyldesley, ASTLEY Atherton, Wigan, and Manchester. A direct bus service runs to the Trafford Centre with an approximate journey time of 24 minutes. Walkden Station is located 8 minutes’ drive to the north connecting to Manchester city centre in an approximate journey time of 31 minutes.
SITUATION
ASTLEY The subject property is situated in the heart of Astley occupying a highly prominent site fronting the southern side of the busy Manchester Road (A572), close to the junction with Coach Road and Higher Green Lane. Manchester Road provides the main car route through Astley towards Manchester City Centre. The immediate area benefits from a large established residential catchment providing a mixture of local amenities to include restaurants nurseries, schools, churches, and pharmacies. Astley is also an established commercial location with Astley Business Park and Astley Park Industrial Estate accommodating many manufacturing and distribution tenants servicing the greater Manchester area. Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 5
DESCRIPTION
Upon completion the property will provide a brand-new state of the art 4,209 sq ft The forecourt will have CoOp branding and laid to concrete. It will benefit from four convenience store with a sales area and back of house storage area. pump islands under a steel frame canopy. The main entrance to the convenience store will be accessed directly from the petrol station forecourt. The site is also an established petrol filling station with a six-tank capacity of approx. 125,000 litres. An additional entrance for goods deliveries is to be located to the rear of the property. The property will benefit from 16 car parking spaces and two cycle bays. Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 6
TENURE TENANCY
The property is held freehold under two separate freehold titles. Upon completion the property will be entirely let to Co-operative Food Stores Limited (guaranteed by Co-operative Group Limited) for a term of 25 years producing an
income of £204,000 per annum. The lease will benefit from fixed annual rental increases of 2.5% per annum until ACCOMMODATIONOS Plan B&W expiry as follows:
Upon completion the property will provide an approximate gross internal area of Year 2.5% Increase Year 2.5% Increase
4,209 sq ft (391 sq m) on a 0.54-acre37040 0 site (0.21 Hectares). 37050 0 2021 £209,100 2033 £281,216
2022 £214,328 2034 £288,247
2023 £219,686 2035 £295,453
2024 £225,178 2036 £302,809
2025 £230,807 2037 £310,410
2026 £236,577 2038 £318,170
2027 £242,492 2039 £326,125
2028 £248,554 2040* £334,278
2029 £254,768 2041 £342,635
2030 £261,137 2042 £351,201 400700 400700 2031 £267,666 2043 £359,981
2032 £274,357 2044 £368,980
* There is a tenant’s option to determine the lease on the 20th anniversary of the lease subject to six months prior notice.
The tenant has a 16 months’ rent free from commencement of the lease which will be topped up by the vendor. Therefore, the rent payable at expiry of the rent-free period will be £209,100 per annum.
For identification purposes only. 37040 0 37050 0
Metre s 0 5 10 20 30 40 50 Scale: 1:1250
Cross Hillock Service Station 563 Manchester Road Supplied by: National Map Centre Astley Plot centre co-ordinates: 370420,400700 License number: Hert10003196s 1 Tyldesley Download file: LewisPartners_CrossHillo Produced: 14/08/2020 Manchester Project name: ck.ziLewisPartners_CrossHip l Serial number: 2257050 M29 7BQ
© Crown copyright and database rights 2020. OS 100031961 Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 7 Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 8
CONVENIENCE STORE /PFS INVESTMENT MARKET
Property Tenant Term Certain Achieved price NIY Date
Westside House, 123 Bath Row, Shell Uk ltd 16 years £2.6m 4.7% 2020 Edgbaston, Birmingham B15 1LS
Co op Bow & Caledonian, London Co-operative Group 17.5 years £10.16m 3.75% 2018
Sainsburys, Horley Sainsburys 14 years £4.89m 4.37% 2018
The Express Portfolio (8 assets of drive thrus comprising Euro Garages Limited 24.6 years £11.6m 4.10% 2018 Starbucks, Burger King & Subway
Andover Road, Newbury Sainsburys 11.25 years £3.3m 4.9% 2018
Sutton Scotney Services A24, Hampshire Shell Uk ltd 21 years £5.1m 4.05% 2017
Hengrove Way, Bristol Rontec 20 years £3.9m 4.85% 2017 Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 9
COVENANT
The Co-op Co-operative Group Limited
The Co-op is one of the world’s largest consumer co-operatives with interests across Year ending Jan Revenue Pre Tax Profits Net Assets food, funerals, insurance, legal services and health. Owned by millions of UK consumers, the Co-op operates 2,600 food stores, over 1,000 funeral homes and it provides products 2020 £10.860Bn £67M £1.864Bn to over 5,100 other stores, including those run by independent co-operative societies and through its recent acquisition of the wholesale business, Nisa Retail Limited. 2019 £10.162Bn £93M £1.859Bn The Co-op is now the UK’s largest Cooperative ahead of John Lewis and Arla Foods. The retail arm of the business now extends to having one store in every UK postcode 2018 £8.943Bn £72M £1.553Bn serving 14.5 million customers every week and employing approximately 90,000 people. The Co-op have been in the process of a significant expansion of their business by Co-operative Food Stores Limited investing over £75 million in 417 new food stores in the last 4 years, including 30 in London, and carried out 138 refits of existing stores. This expansion created 1,600 new Year ending Jan Revenue Pre Tax Profits Net Assets jobs and has led to a strong revenue rise by nearly 7% to £10.9Bn in the 52 weeks to January 4th 2020. The Cooperative food group have capitalised on this expansion having 2019 £1.577Bn £34.3M £527.0M come out of the covid-19 pandemic as one of the supermarket sectors “winners”, with increased sales due to a steep surge in consumer demand for convenience led food £1.575Bn £39.7M £521.0M stores. 2018
In September 2020 the Co-op announced an expansion plan to open 50 new stores and 2017 £1.656Bn £35.6M £532.5M create 1,000 new jobs. The new roles come on top of the 1,000 jobs the retailer added during lockdown, as the demand from shoppers exponentially increased. The Co-op said its research found that 70% of adults have relied on their local stores for food and other goods in recent months as customers prioritised convenience.
The property will be let in its entirety upon completion to Co-operative Food Stores Limited (guaranteed by Co-operative Group Limited). Co-operative Food Convivence Store and Petrol Filling Station, Cross Hillock Service Station, 563 Manchester Road, Astley, Tyldesley, Manchester, M29 7BQ 10
EPC PROPOSAL An EPC will be provided on completion of construction of the convenience store. Offers are invited in excess of £4,361,000 (FOUR MILLION THREE HUNDRED AND SIXTY-ONE THOUSAND POUNDS) subject to contract and exclusive of VAT VAT for our client’s freehold interest in the above. A purchase at this level will reflect a net initial yield of 4.50%, and the following The property is opted to tax. However, it is anticipated that the sale of the reversionary yield profile throughout the term of the lease: investment will be treated as a TOGC.
Year Yield Year Yield
2021 4.50% 2033 6.07%
2022 4.63% 2034 6.22%
2023 4.74% 2035 6.37%
2024 4.86% 2036 6.53%
2025 5.00% 2037 6.70%
2026 5.10% 2038 6.86%
2027 5.23% 2039 7.03%
2028 5.36% 2040 7.21%
2029 5.49% 2041 7.39%
2030 5.63% 2042 7.57%
2031 5.77% 2043 7.76%
2032 5.92% 2044 7.96%
The purchase will represent an equivalent yield of 6.32% after allowance for purchaser’s costs of 6.56%. FURTHER INFORMATION
Should you wish to view the property or require any further information please contact the sole agents.
Stephen Gevertz Joseph Rantor Mobile: 07879 628 646 Mobile: 07976 599 374 [email protected] [email protected]
Lewis & Partners Chartered Surveyors and Property Consultants
15/19 Cavendish Place, London W1G 0QE
Tel: 020 7580 4333
SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT
LEWIS & PARTNERS LLP FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY WHOSE AGENT THEY ARE GIVE NOTICE THAT:-
1. These particulars do not constitute any part of the offer for sale or contract for sale. 7. Any properties or drawings of the relevant property or part thereof or the neighbouring areas may not depict the property 2. All statements contained in these particulars as to this property are made without responsibility on the part of Lewis & or the neighbouring areas at the date a prospective purchaser or tenant inspects the property. Prospective purchasers are Partners LLP or the vendors or lessors. strongly advised to inspect the property and neighbouring areas. 3. None of the statements contained in these particulars as to this property are to be relied on as statements or 8. Lewis & Partners LLP have not measured the property and have relied upon clients information. Therefore Lewis & Partners representations of fact. LLP give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements. 4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the 9. All terms quoted are exclusive of value added tax unless otherwise stated. statements contained in these particulars. 10. The vendors do not make nor do Lewis & Partners LLP any person(s) in their employment give any warranty whatsoever in 5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate relation to this property. the property. The plans are photographically reproduced and therefore not to scale except where expressly stated. The 11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. plans, photographs or drawings are for identification purposes only. 12. These details were prepared as of September 2020. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be Adrian Gates Photography & Design 07710 316 991 included in the sale.