Investment Summary
� Convenience store investment opportunity
� Freehold
� Prime location in densely populated residential suburb on outskirts of Derby
� Let to 5A1 covenant of Tesco Stores Limited
� Rental income of £61,347.50 per annum
� Unexpired lease term of 17.9 years with 7.9 years to tenant break
� Upwards only index linked rent review due 3rd July 2019
� Minimal local competition from other convenience stores
� We are instructed to seek offers in excess of £965,000 for our client's freehold interest, subject to contract and exclusive of VAT.
� Purchase at this level would reflect a net initial yield of 6% assuming standard purchaser's costs of 5.71%.
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Location
Derby is the commercial and administrative centre of Derbyshire and the third largest conurbation in the EastMidlands after Nottingham and Leicester. Derby is locatedapproximately 42 miles north-east of Birmingham, 16 mileswest of Nottingham and 30 miles to the south of Sheffield.
The city of Derby has a population of approximately250,000 and an estimated primary catchment populationof 554,000 people (PROMIS 2014). Derby is one of the UK’seconomic hotspots ranked second out of all UK cities foremployment growth. (Source: University of Derby ).
Derby benefits from excellent transport links being located7 miles to the west of Junction 25 of the M1, accessed viathe A52 to the east. To the west, the A50 links Derby toStoke-on-Trent and Junction 15 of the M6 motorway,whilst to the south-west, the A38 affords quick access toBirmingham.
Derby's mainline railway station lies about 0.7 miles to thesouth of the property. There are direct trains betweenDerby and London St Pancras with a journey time of 1 hour30 minutes with a frequency of up to every 30 minutes.
The East Midlands International Airport is located just over10 miles to the south east of the city and serves over 4 million passengers each year.
TESCO STORES LTD,SUNNYHILL,DERBYTOTAL COMMITMENT IN EXCESS OF £965,000
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Situation
The property is situated on Stenson Road in Sunnyhill tothe south of Derby city centre, just off the B5021 whichlinks the A52 to the east and west. Sunnyhill is an established, primarily residential area with the combinedpopulation of Sunnyhill and Littleover being C.23,000. Inaddition to the road network Peartree rail station whichis located on the Derby Crewe line has a journey time toDerby mainline station of 7 minutes.
Within a two mile radius there are a number of schools including St George's Catholic Primary School, Gayton Junior School, Little Scholars Day Nursery, NormantonInfants School and Derby Moor Community Sports College.
Despite the density of the residential population there isminimal local competition with only a small Co-op being located in Sunnyhill within 1 mile of the subject property.
The nearest local competition to this property:
Sainsbury's 1.1 miles
Asda 1.5 miles
Morrison's 2.34 miles
Co-op 0.5 miles
M50
M5
M40
M42
M6
M69
M1
M6 Toll
M54
M6
M1
24A50
A50
A38 A42
M42
A38
A6
Stoke on Trent
Uttoxeter
Stafford
Burton upon Trent
Telford
Great MalvernEvesham
Wolverhampton
Worcester
Birmingham
Coventry
Stratford upon Avon
Lichfield
YYYBYBYRRRREEEEEDDD BYYBYBBBEEEEEDD RRRRRBBDD RR YYBA52
A38
A5111
A61
A6
A52
A6
A52
A52
A516
A5250 A5194
A50
A5111
STEN
SON
ROAD
5
DERBY
PROPERTY
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Description
Built in 1936 in the art deco style as a Blue Pool publichouse the property was fully refurbished in 2009 to providea Tesco Express convenience store. The property providesa ground floor area of 4,713 sq ft GIA with a net sales areaof 3,015 sq ft. In front of the property is a tarmacked parking area providing 13 parking spaces including 2 disabled spaces.
The upper floor of the property formerly providedancillary residential accommodation to the public house.This space which is included within the Tesco demise,is currently mothballed by them, but would provide a futuredevelopment opportunity, subject to the usual consents.
Plan for indicative purposes only.
Tenure
FREEHOLD
Tenancy
The property is let to Tesco Stores Limited for a term of 25years from 03/07/2009 on a full repairing and insuring leasewith five yearly index linked upward only rent reviews(minimum increase of 1% and capped at 4%). Please seethe tenancy schedule below:
Address: Blue Pool Hotel, Stenson Road.
Tenant Start Expiry Review Rent £paDate Date Date Date
(Break)
Tesco 03/07/09 02/07/34 03/07/19 £61,347.50Stores (03/07/24Limited
Total £61,347.50
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Tenant Covenant Information
Tesco was founded in 1919 and now operates in 12 countries around the world, employing over 530,000 people. In 2013/14 group sales totalled £70.9bn and thegroup profit before tax was £2.3bn. Tesco has 7,599 storesworldwide with 3,461 of those located in the UK.
Tesco Stores Limited has a Dun & Bradstreet rating of 5A1,representing a minimum risk of business failure and basedon a tangible net worth of £3,038,000,000.
Market CommentaryWe are aware of the following transactions taking place atauction. All of the properties in thetable below are let to Tesco Stores Ltd:
EPC RatingsThe property has been given an EPC Rating of E112.Full information to be provided upon request.
VATThe Property has been elected for VAT. It is proposed thetransaction will be treated as a TOGC.
ProposalWe are instructed to seek offers in excess of £965,000 forour client's freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect a netinitial yield of 6% assuming standard purchaser's costs of5.71%.
Fiscal Consolidated GBP Fiscal Consolidated GBP Fiscal Consolidated GBP
22 Feb 2014 23 Feb 2013 25 Feb 2012
Sales Turnover 42,547,000,000 42,662,000,000 41,981,000,000
Profit 1,696,000,000 921,000,000 1,126,000,000
Tangible Net Worth 3,038,000,000 3,113,000,000 6,894,000,000
Date Address Rent (pa) Lease Start Term Certain Price Yield
Under offer 1 Clifton Road, £60,000 On completion 10 years £1,135,000 5.00%Isleworth, London of building
March 2015 Yorktown Road, £85,000 On completion 15 years £1,495,000 5.37%Sandhurst of building
Dec 2014 213-219ˆ £48,500 25/11/2014 9.5 years £830,000 5.52%Station Road
Oct 2014 26 The Droveway, £26,603 29/09/2006 6.3 years £430,000 5.90%Hove
Oct 2014 25 Derby Road, £48,000 10/11/2010 4.5 years £740,000 6.13%Chellaston, Derby
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Further Information
Contact:
Mike FoxE: [email protected]
DD: 020 7297 6273
Bidwells25 Old Burlington StreetLondon W1S 3AN
August 2016
Contact:
Kat IlettE: [email protected]
DD: 020 3761 3633
Bidwells25 Old Burlington StreetLondon W1S 3AN
IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that:These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP has no authority to make or give in writing or verbally any repre-sentation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliancesor facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property.Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list ofmembers is available for inspection.
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