The Co-operative, Main Road

Ryton NE40 3RA

Overview

  • Modern purpose built foodstore totalling 2,162.1 sq m (23,273 sq ft) occupying a prominent frontage onto Main Road, with an extensive rear yard and car parking
  • Single let to Co-operative Foodstores Limited with surety provided by Co-operative Group Limited, a 5A1 covenant
  • Dominant convenience food offering in a densely populated area and established commuter location
  • Let on a 35 year lease from 29th September 1984 expiring on 28th September 2019 (c. 2.5 years unexpired)
  • Passing rent of £270,000 per annum (£11.60 per sq ft)
  • Strong asset management opportunities including reletting, reconfiguration and subdivision potential subject to planning
  • Offers in excess of £3,498,000 (Three Million, Four Hundred and Ninety-Eight Thousand Pounds) which reflect a Net Initial Yield of 7.25% after standard purchaser's costs of 6.50%

Location

Ryton is an established commuter town situated approximately 7 miles to the west of Newcastle city centre and 8.5 miles north west of Gateshead town centre. The town forms part of the Tyne and Wear conurbation and has a population of circa 1.1 million (2011 census).

The town is well served by road communications via the A695 link road, which connects Blaydon and the A1(M) 3 miles to the south east and Prudhoe and the A68 approximately 8 miles to the west. The closest rail connection is via Blaydon Train Station approximately 3 miles to the east, which has regular connections to Newcastle with a journey time of 12 minutes. Newcastle International Airport is approximately 8.5 miles to the north and provides daily scheduled flights to both domestic and international destinations.

Situation

The property is situated centrally within Ryton with an extensive frontage to Main Road (B6317). Access is provided via Parsons Drive, connecting to the main car park and service yard to the rear. Main Road forms the town's main high street and provides a linear focal point to the town's retail provision.

The property provides the dominant food retail provision within the town. The surrounding area is predominantly residential with nearby occupiers on Main Road including national multiples such as Barclays Bank and Sainsbury's Local, in addition to local independents such as a bakery and pharmacy.

Description

The property comprises a detached retail warehouse of steel portal frame construction with part brick and part profile metal clad elevations. Following a fire in 1999, the property was entirely rebuilt and as such is modern in specification providing accommodation perfectly suited to current retail requirements. The sales area is set out entirely over the ground floor, with ancillary offices, staff accommodation and plant room facilities at first floor level. The rear of the property comprises a store room, refrigeration units and loading bay access.

Externally the property benefits from an extensive shared car park providing 92 delineated spaces to the front and side of the property. In addition to this, there is an ample service yard and loading bay to the rear.

Further information can be found in the marketing brochure.

ACCOMMODATION

Ground Floor Retail Warehouse - 1,893.56 sq m (19,801 sq ft)
First Floor Ancillary - 322.56 sq m (3,472 sq ft)
Total - 2,162.12 sq m (23,273 sq ft)

Parking provision
Car Parking Spaces - 92
Ratio - 1:253 sq ft

Tenure

Freehold.

Tenancy

The property is let in its entirety to Co-operative Foodstores Limited t/a The Co-operative Food with surety provided by Co-operative Group Limited. The lease is held on a Full Repairing and Insuring basis for a term of 35 years from 29th September 1984 without a break and is subject to five yearly open market rent reviews. The passing rent is £270,000 per annum exclusive as set at the 2015 rent review.


Covenant Information

Co-operative Foodstores Limited (Tenant)

CRN: 32443R
Co-operative Foodstores Limited is the UK's fifth largest food retailer with over 2,500 convenience stores.
Further information is available at www.co-operativefood.co.uk.
The most recent accounts, for the year ending January 2016, show a revenue of £284.4m, pre-tax profit of £12.3m and net assets of £403.7m.

Co-operative Group Limited (Surety)

CRN: 525R
The Co-operative Group, established in 1844, is the largest co-operative in the UK with 4.3 million members and provides a variety of retail businesses including foods stores, insurance services, legal services and funeral care.
Further information is available at www.coop.co.uk.
The most recent accounts, for the year ending January 2016, show a revenue of £10.097bn, pre-tax profit of £81m and net assets of £2.954bn.

VAT

An option to tax has been made on the property and VAT will therefore be payable on the purchase price. It is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

EPC

The building has been assessed and has an EPC rating of D (83).
A copy of the Energy Performance Certificate is available upon request.

Proposal

We are instructed to seek offers in excess of £3,498,000 (Three Million, Four Hundred and Ninety-Eight Thousand Pounds) which reflect a Net Initial Yield of 7.25% after standard purchaser's costs of 6.50%.

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NET INITIAL YIELD:
7.25%
PRICE:
£3,498,000
REGISTER INTEREST
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