SECURE CONVENIENCE STORE INVESTMENT OPPORTUNITY THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, TONBRIDGE TN10 4AE Investment Summary • Secure convenience store investment opportunity • Located in a densely populated town in the south east • Converted/extended building refitted in 2015 and scheduled for latest Co-op branding in 2020 • Provides a total of 3,324 sq ft • Freehold site of c. 0.126 acres (0.051 hectares) • Sale and leaseback to undoubted covenant of Co-operative Group Food Limited (D&B 5A1) • 15 year FRI lease without break from completion of sale • Low initial rent of £55,000 per annum (£16.55 psf) • 5 yearly upward only CPI reviews (1-3% collar and cap) • Offers in excess of £982,000 (STC) • Representing a Net Initial Yield of 5.25% • Estimated reversionary yield of 6.08% in the 5th anniversary and 7.05% in 10th anniversary SECURE CONVENIENCE STORE THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, OXFORD Hoddesdon CHELMSFORD TONBRIDGE TN10 4AE INVESTMENT OPPORTUNITY HEMEL HEMPSTEAD M40 M25 M1 Watford M11 Rickmansworth Location Hornchurch SWINDON M25 SLOUGH LONDON MOUTH OF THE THAMES M4 Tonbridge is a large and prosperous market town in Kent, M4 4 miles north of Royal Tunbridge Wells and 12 milesM4 southREADING M25 west of Maidstone. The town has a resident population of M3 M2 M25 M26 CANTERBURY c. 40,500, rising to 130,500 at a district level. Sevenoaks M25 MAIDSTONE Dorking REDHILL Oxted GUILDFORD Higham is a densely populated residential suburb of Tonbridge Tonbridge M20 M3 M23 Ashford with multiple schools including Cage Green Primary, Woodlands ROYAL DOVER TUNBRIDGE WELLS M20 Primary and Hugh Christie School. Crawley Folkestone Tenterden WINCHESTER Horsham The town has a wealthy catchment and SALISBURYranks within the top 25% of STRAIT OF DOVER Haywards Heath authorities for residents earnings, employment rate and GVA per Rye head. Average house prices in Tonbridge are at £400,000, 73% SOUTHAMPTON South Downs Lewes above the national average. Hastings m La n Bexhill CHICHESTER e New Forest Car p BRIGHTON en te rs d a PORTSMOUTH L o a Newhaven R n e e on Eastbourne A t shes Lan s d e i a M River Bour Hadlow BOURNEMOUTH n Hadlow e t Co Poult Wood College ee urt L Str a Golf Club A26 High ne A shes Lane A227 oad ge R Tonbrid ide R e y y u a en d W ada nbridge Roa Av To Far n g n to i w Ne m le F W Cuckoo h Lane is S t d t l a r er e R o a o R Trench Wood mside ad Darwin ria e o iv y r a D Vict n i A26 f W D Knig a r w y e i r a v v a i d r e D h W a atshe D t Hilden Br o e t d R l h R e o i g Wh i f a e ook e c n d r b ad o en n o C e D St R Lawr n a Road Eas in e lto a H r R o w o u ad W Hugh Christie n dl r t Pu a Technology R D o e H cel a liu College d k l l a s Av W Dri e el d n Wil e a v nu s Han L B on e ar R S e c Long Mead Cage Green o m h a u ester d ll gha Community Primary ivan Road Hi River W Primary School Higham Wood ay Bou d e F T e Elm B245 a hre School m Lan r r a amle L n B2027 Ro igh ane T e H hree er E n y d lm r a L u d Ro stwick ane T Ro ad e Roa a Gue h o d rd fo Hop n Colin Blyt ia R ad a A227 ue r n Cr o oad R g R T ve k cto o a d i Road A or Y r n d V bri de h e W c dg ay d Salisbury Do i g n Estr wi Road e r ventry Th R o o o N a C d ney W C Rom ay lose O rchar d d oa D ry R rive Salisbu N u Rochest rs Rod er R ery Cl ne o os y A ad e v e venue T n allis A h u e ornw e Ridge C Ridgew ay ain Line C r e ook s way c e Br nt n d Hilden Road Hilde oa e R Grange lak e d t n Preparatory oa ar ur R H School o w b lo d ip h Ha S Park Road Dry Hill Yard ley P a B245 rk Road London Road So u R th Ea Tonbridge A26 iver M School e s d t oad w ern R y Eldridges ay ay w R w M lo iver Medwa d d Lock e ain L eam M Ha er Riv i Mill Str ne ve edw A227 Ri r M ay Tonbridge d a Golf Centre o R w e B n o a r dlo d a L y d k H n a e o Ro n e n lak a art C H Riv er dway Me M B2021 Riv er edw ay East Street V a B2260 River Medway le Road y Stream an Bot WOODLANDS PRIMARY SCHOOL CAGE GREEN PRIMARY SCHOOL HUGH CHRISTIE SCHOOL TONBRIDGE HIGHAM LANE HIGHAM LANE TO TONBRIDGE TO ROYAL TUMBRIDGE WELLS SECURE CONVENIENCE STORE THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, INVESTMENT OPPORTUNITY TONBRIDGE TN10 4AE Situation Description & Accommodation Tenancy The property sits on a prominent position within a The property itself comprises a single storey retail The property will be let from completion of the sale to local retail parade with other occupiers including terrace with brick elevations under a pitched tiled roof. the Co-operative Group Food Limited on a full repairing independent restaurants/takeaway, a McColls The property has been extended in 2015 to provide and insuring lease for a term of 15 years. C-store, a beauty salon and optometrists. As such more sales and storage space, and extends to a total of the parade provides the primary convenience 3,324 sq ft (split between sales of 2,455 sq ft and back The initial rent of £55,000 per annum (£16.55 psf) is to shopping for the many residents in the local area, of house of 869 sq ft). be reviewed every 5 years in line with the consumer and save for the McColls opposite there is limited price index (capped and collared at 1%-3%). competition in the catchment. The property sits on a site of 0.126 acres (0.051 hectares) and includes a side entrance for deliveries. The Co-op store sits at the end of the parade, with There is plentiful street parking provided to the front of Tenure plentiful street parking provided. the store. Freehold (Title number: TT55925). SECURE CONVENIENCE STORE THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, INVESTMENT OPPORTUNITY TONBRIDGE TN10 4AE Covenant Status Co-operative Group Food Limited (Company Number: 26715R) is a wholly owned subsidiary of The Co-operative Group Limited which was established in 1844 and now operates 4,500 outlets with almost 90,000 employees and has an annual turnover of £10.50 billion. Co-operative Group Food is the UK’s 5th largest food retailer with almost 2,800 local, convenience and medium sized stores employing over 69,000 people. Furthermore existing arrangements with independent co-operative societies means they supply more than 7,700 stores. In the first half of 2018 the group opened 45 new stores and created 600 jobs, and with the acquisitions of Nisa and a 5-year deal to supply Costcutters, the company has seen significant recent growth. A summary of Co-operative Group Food Limited accounts is set out below. Co-operative Group 5th January 2019 6th January 2018 31st December 2016 Food Limited Turnover £7,185,200,000 £6,940,200,000 £6,933,400,000 Pre Tax Profits £207,900,000 £232,500,000 £154,200,000 Shareholder Funds £1,970,500,000 £1,875,100,000 £1,805,400,000 SECURE CONVENIENCE STORE THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, INVESTMENT OPPORTUNITY TONBRIDGE TN10 4AE Anti-Money Laundering Regulations VAT EPC In accordance with Anti-Money Laundering Regulations, two forms The property is elected for VAT and therefore VAT will The property has an energy performance of identification and confirmation of the source of funding will be be payable on the purchase price. The transaction will rating of C-68. A copy of the certificate can be required from the successful purchaser. not be able to be dealt with as a TOGC. provided upon request. SECURE CONVENIENCE STORE THE CO-OPERATIVE, 17 MARTIN HARDIE WAY, INVESTMENT OPPORTUNITY TONBRIDGE TN10 4AE Proposal Further Information For further information or to arrange an inspection, please contact: We are instructed to quote offers in excess of exclusive of VAT and subject Daniel Campbell £982,000 Tel: 07741 593 968 to contract. A purchase at this level Email: [email protected] reflects a5.25% net initial yield and after Mark Powell Tel: 07825 077 724 deducting sale and leaseback purchase Email: [email protected] costs of 6.73%. Christopher Dee: 40 Peter Street, Manchester M2 5GP Year Rent Per Annum Running Yield Initial Rent £55,000 5.25% Year 5 £63,760 6.08% Year 10 £73,915 7.05% MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy.