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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 (approximately 16.5 years unexpired).
There is a tenant’s break option on 11th October 2026, subject to six months’ notice and a rent penalty of £9,600 if exercised.
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);
Approximately 16.5 years unexpired lease term (TBO October 2026);
Attractive lot size to an investor;
A purchase at the asking price reflects an attractive net initial yield.
