SECURE INCOME INVESTMENT GUARANTEED BY CO-OP (12 YEARS UNEXPIRED)
FORMER SUPERMARKET
LUNE STREET, PADIHAM, BURNLEY, LANCASHIRE, BB12 8DG
On behalf of N J Pask and R J Goode, Joint Fixed Charge Receivers
INVESTMENT CONSIDERATIONS
■ Prominent town centre former supermarket investment
■ Situated in the attractive town of Padiham
■ The unit comprises a total of 1,023.5 sq m (11,017 sq ft) of well configured floor space
■ Let for a further 12 years (no breaks) to the excellent covenant of Rochpion Properties (4) LLP, with Co-operative Group Limited as guarantor
FORMER SUPERMARKET LUNE STREET, PADIHAM, BURNLEY, LANCASHIRE, BB12 8DG
SECURE INCOME INVESTMENT
GUARANTEED BY CO-OP
■ Current rent of £179,885 per annum
■ Fixed rental uplifts in June 2021 and June 2026, based on 2.25% per annum compounded 5 yearly
■ Car parking for 80 cars
■ Freehold
■ Site area of 1.18 acres (0.48 hectares)
■ We are instructed to seek offers in excess of £2,300,000 (Two Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 7.35% after allowing for purchaser’s costs of 6.34%. With the following guaranteed reversions: -
Date Running Yield
June 2021 8.22%
June 2026 9.19%
LOCATION
Burnley is located in the county of Lancashire, 44 km (27 miles) to the north of Manchester, 17 km (11 miles) to the east of Blackburn and 48 km (30 miles) to the west of Bradford.
The town is located immediately to the east of Junctions 10 and 11 of the M65 Motorway which in turn links with the M61 Motorway at Junction 9 and the M6 Motorway at Junction 29. The M6 Motorway gives access to Birmingham and London to the south and Carlisle and Scotland to the north.
Burnley is well connected, with two railway stations that service the town centre, Burnley Railway Station and Burnley Manchester Road Railway Station. Burnley Central Railway Station provides a direct service to Manchester Victoria Railway Station (50 minutes) and Preston (33 minutes), with Burnley Manchester Road Railway Station providing direct services to Leeds (1hr 22 minutes) and York (1hr 52 minutes).
There are four International airports within an hour’s travel of Burnley, with Manchester Airport 50 km (31 miles) south, Liverpool John Lennon Airport 66km (41 miles) south west, Leeds Bradford Airport 39 km (24 miles) north east and Blackpool Airport 53 km (33 miles) west of the property.
FORMER SUPERMARKET LUNE STREET, PADIHAM, BURNLEY, LANCASHIRE, BB12 8DG
SECURE INCOME INVESTMENT
GUARANTEED BY CO-OP
LeedsBradford
Liverpool
Blackpool
Hawarden
Manchester
Robin Hood
Retford
A658
A629
A646
A629
A628
A523
A623
A614
A556
A580
A6068
A6033
A56A59
A59
A65
A687
A585
A59
A565
A583
A570
A51
A53
A60
A61
A59
A61A19
A64
A63
A19
A61
A65
A1
A1
M1
M1
M6
M6
M6
A1(M)
A1(M)
M55
M58
M53M56
M65
M61
M60
M62
M62
M62
M66
MANCHESTERMANCHESTERMANCHESTER
SHEFFIELDSHEFFIELDSHEFFIELD
LIVERPOOLLIVERPOOLLIVERPOOL
YORKYORKYORK
BRADFORDBRADFORDBRADFORDLEEDSLEEDSLEEDS
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Dis
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Na
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PRESTON
LANCASTER
BLACKPOOL
LANCASTER
BURNLEYBLACKBURNBLACKBURN
PRESTON
SOUTHPORT
PADIHAM
OLDHAM
HALIFAX
HUDDERSFIELD
BOLTON
BLACKPOOLGUY ST GROVE LA
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CLITH
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LUNE STR EET
RYCLIFFE ST
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A6068A
617
A671 BURNLEY ROAD
PadihamMemorial
Park
PadihamFootball Club
River Calder
SITUATION
Padiham, with a population of 10,000, is a town situated 3 miles west of Burnley.
The property is prominently positioned on the south side of Lune Street adjacent to the main arterial road of the town, Burnley Road (A671), which leads onto the A6060, providing access to Junction 8 of the M65 Motorway 8km (5 miles) to the south.
Rose Grove Railway Station is located 1.8 miles south of the subject property and offers direct routes to Burnley Town Centre (10 minutes), Blackburn (23 minutes) and Leeds (1hr 46 minutes).
The property benefits from being situated opposite a Tesco Superstore as well as the established High Street (Burnley Road), housing a number of national multiples, which draws strong footfall to the location.
R
River Calder
76.8m
77.1m
m
78.0m
Line Of Posts
LUNE STREET
TATT
ERSA
LL S
T
RIBBLE STREET
RLEY STREET
WAD
DING
TON
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TREE
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7
1109 111
103
101
5
99
Riverside Mill
4
El Sub Sta
15
21
62
Former Somerfield Store Lune Street Padimore Burnley
Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
FORMER SUPERMARKET LUNE STREET, PADIHAM, BURNLEY, LANCASHIRE, BB12 8DG
SECURE INCOME INVESTMENT
GUARANTEED BY CO-OP
DESCRIPTION
The property comprises a single storey retail unit constructed in the 1980s of steel frame with brick and profile metal clad elevations beneath a pitched profile metal sheeted roof.
The internal specification comprises tiled floors, suspended ceilings with LED lighting and air cooling cassettes.
The majority of the property is used as sales accommodation with large glazed display windows fronting towards Burnley Road. There are also staff amenities and a stock room on the western side of the property with a roller shutter loading door leading onto the car park. The car park is accessed from Lune Street and offers 80 car parking spaces.
The property is currently being underlet to Boyes and is trading as a household store.
SITE AREA
Site area of 1.18 acres (0.48 hectares).
© Crown Copyright, ES 100004106. For identification purposes only.
ACCOMMODATION
Floor Use Sq m Sq Ft
Ground Sales/store 1,023.51 11,017
TENANCY The property is let in its entirety to Rochpion Properties (4) LLP for a term of 25 years from 29th June 2006 expiring on 28th June 2031 (c.12 years unexpired) at a current passing rent of £179,885 per annum.
The lease provides for 5 yearly upward only rent reviews, calculated on a fixed uplift based upon 2.25% per annum compounded 5 yearly. The next rent reviews are due in June 2021 and June 2026 where the fixed uplifts are calculated to be as follows:
Date Rent
June 2021 £201,053
June 2026 £224,713
The property had originally been let to Somerfield Stores Limited but was assigned in July 2016 to Rochpion Properties (4) LLP with Co-operative Group Limited as guarantor.
The property has been underlet to W. Boyes & Co Limited from 21st April 2016, for the same term as the superior lease. There is a tenant break option in the sub-lease on the 21st April 2026.
TENURE Freehold.
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FORMER SUPERMARKET LUNE STREET, PADIHAM, BURNLEY, LANCASHIRE, BB12 8DG
SECURE INCOME INVESTMENT
GUARANTEED BY CO-OP
COVENANTRochpion Properties (4) LLP
A summary of Rochpion Properties (4) LLP accounts are below:
06/01/2018 31/12/2016 02/01/2016
Turnover £482,000 £364,000 £703,000
Pre Tax Profits £973,000 £6,866,000 £1,905,000
Total Net Worth £84,686,000 £83,713,000 £76,848,000
Guarantor:
The Co-operative Group Limited
The Co-Operative Group is the fifth largest food retailer in the UK, operating from over 2,800 local, convenience and medium sized stores. The group is also the largest UK funeral services provider, a major general insurer and a growing legal services business.
The Group employs over 70,000 people across the various business lines with over 4.65 million active members, accounting for 33.5% of total food turnover. In H1 2018, sales increased to £5bn, an increase of 10% compared to 2017 sales of £4.5bn. This reflects a strong performance within the Food business as well as accounting for the acquisition of Nisa’s wholesaling operations.
In the first half of 2018, The Co-Operative Group opened 45 new food stores and 10 new funeral homes creating over 600 new jobs. They also acquired Simplify Probate to expand the probate business and increase existing support for bereaved families, making Co-Op the largest provider of probate services in the UK.
In the second half of 2018, the group has significantly increased the rate of expansion, opening 60 new food stores and 15 new funeral homes in addition to introducing a revised product base within the insurance business.
The Group is undergoing rapid expansion in the wholesale market following the recent acquisition of Nisa and five-year commercial deal to supply Costcutter Supermarkets Group. When combined with independent co-operative societies, The Co-Operative Group now supply over 7,700 stores nationwide.
A summary of Co-operative Group Limited’s accounts are below:
06/01/2018 31/12/2016 02/01/2016
Turnover £9,470,000,000 £9,472,000,000 £9,301,000,000
Pre Tax Profits £72,000,000 -£132,000,000 £23,000,000
Total Net Worth £2,191,000,000 £2,298,000,000 £2,006,000,000
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 04.19
PROPOSALWe are instructed to seek offers in excess of £2,300,000 (Two Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 7.35% after allowing for purchaser’s costs of 6.34%. With the following guaranteed reversions:
Date Running Yield
June 2021 8.22%
June 2026 9.19%
VATWe understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).
EPCAn EPC is available in the dataroom.
DATAROOM For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/coopburnley
Ronnie Morgan020 7543 [email protected]
For further information or to make arrangements for viewing please contact:
Alex Butler020 7543 [email protected] allsop.co.uk