English 
Arabic 
Chinese 
French 
German 
Hebrew 
Spanish 
Accommodation
The property has been measured by BKR Floor Plans and provides the following accommodation:
| Gross Frontage | 10.97m | 36’0” |
| Net Frontage | 10.52m | 34’6” |
| Zone A | 63.36 sq m | 682 sq ft |
| Zone B | 64.47 sq m | 694 sq ft |
| Zone C | 85.65 sq m | 922 sq ft |
| Remainder | 73.11 sq m | 787 sq ft |
| Total | 286.60 sq m | 3,085 sq ft |
A set of floor plans is available to download and will be re-addressed to a purchaser at a cost of £620.00 plus VAT.
Rateable Value
According to the Valuation Office website the rateable value for the property is as follows:
| Address | Description | Rateable Value |
| 60b Wedgewood Street | Shop & Premises | £26,500 |
The business rate multiplier is 49.9 pence per pound.
Tenure
New 125 year long leasehold interest at a peppercorn rent.
Tenancy
The ground floor unit is let to Yaal Cash & Carry Limited (t/a One Stop), with a guarantee from Sabaratnam Kugananthan and an Authorised Guarantee Agreement from Mr Jegaraman Paranthaban. The lease is effectively full repairing and insuring lease, subject to a Schedule of Condition, for a term of 20 years from 11th October 2021, expiring on 10th October 2041 (over 16 years unexpired).
There is a tenant’s break option on 11th October 2026, subject to six months’ notice. The tenant has demonstrated strong commitment to the site, and the likelihood of the break being exercised appears minimal. To offer further reassurance, the vendor will pay the purchaser £31,000 (equivalent to 12 months’ rent) if the break is exercised. Additionally, the tenant would incur a £9,600 rent penalty for exercising the break.
The current passing rent is £31,000 per annum equating to £10.00 per sq ft overall. The lease benefits from five yearly upwards only open market rent reviews, the next being on 11th October 2026.
A rent deposit of £12,400 is held by the Landlord.
EPC
The property has an EPC rating of B.
Covenant
The tenant, Yaal Cash & Carry Limited, is a franchisee of One Stop.
The lease is personally guaranteed by the company’s Director, Mr Sabaratnam Kugananthan, with an Authorised Guarantee Agreement from Mr Jegaraman Paranthaban.
A rent deposit of £12,400 is also held by the Landlord.
One Stop is wholly owned by Tesco PLC and employs over 10,600 staff. The convenience store chain has been providing a retail franchise model since 2014 with over 300 franchise stores across England, Scotland and Wales, supported by 700 company stores.
For the year ending 24th February 2024 One Stop reported a Revenue of £1.29 billion and Pre-Tax Profits of £22 million (up from £15.4m in 2023). Sales from its franchise division rose from £187.2 million to £217.2 million.
VAT
The property is VAT elected. It is anticipated (subject to the purchaser’s VAT status) that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek a figure of £400,000 (Four Hundred Thousand Pounds), subject to contract, equating to a net initial yield of 7.44%, assuming purchasers’ costs of 4.18%.
Please note that a purchaser will be re-charged the costs of the measured survey £620.00 + VAT) and the searches (£234.60) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the purchase price + VAT.
Investment Considerations
An opportunity to acquire a convenience store investment;
The property is situated in a sought-after neighbourhood and benefits from being in a densely populated area;
The tenant is an established franchisee of One Stop (wholly owned by Tesco PLC);
Over 16 years unexpired lease term;
Attractive lot size to an investor;
A purchase at the asking price reflects an attractive net initial yield.
