Price £675,000 excl VAT should it be applicable.

Rates Payable Upon Enquiry

EPC Rating This property has been graded as C (73)

Description

The ground floor is let to the Co-op on a Lease due to expire in 2030, they have been in occupation since 2001. The current rent payable is only £28,400 pa and this is based on the original size of 2,580 ft². This equates to just £11 psf and many comparable stores are achieving in the region of £15 psf. Most interestingly the Tenant has extended their demise twice during their tenure, firstly by 714 ft² in 2004 and subsequently by a further 640 ft² in 2013.

The Landlord & Tenant Act 1954 provides for Tenant's improvements to be disregarded for the first 21 years. Therefore, we are of the opinion that being as the Tenant's first extension was carried out in 2004, then the 2030 lease renewal will include this additional square footage, as 21 years will have passed. However, the second extension cannot be rentalised until after 2034. Furthermore, should Co-op decide not to renew in 2030, then the entire foot print can be rentalised for a new Tenant. Thus making the rent highly reversionary which could be in the order of the following; renewal to Co-op at £15 psf x 3,294 ft² = £49,410 pa, or new Lease to a n other at £15 psf x 3,934 ft² = £59,010 pa.

Plus the first floor, which is separately accessed and currently let to Coaching Culture Ltd by way of a 4 year Lease from 2024. There is a Tenant only break in May 2026. This section is used as an office, although it could easily be converted into an apartment, as and when the existing Tenant vacates. Passing rent £10,320 pa.

Co-operative Group Ltd Covenant Information

Co-operative Group Food Ltd is a wholly owned subsidiary of The Co-operative Group Ltd which was established in 1844. The Co-op operates more than 2,500 stores and an additional 1,500 stores are run by independent co-operative societies and franchises (with stock supplied by Co-op). The company employs c.65,000 people and their annual turnover recorded in January 2024 was reported at £8,495,800,000, with pre-tax profits of £8,300,000.

Tenancy & Yield Analysis

Co-operative Group Food Ltd (Company Number IP26715R) provides outstanding and sought after covenant strength and their Lease is due to expire in 2030, they have been in occupation since 2001.

Coaching Culture Limited (Company Number 10855629) is a software company and provide local covenant strength and their Lease is due to expire in 2028, although they have a break clause mid 2026.