Cooper Rose Real Estate has been instructed to market this modern, purpose built food store investment in Immingham, North-East Lincolnshire, the salient points of which are as follows:
Immingham is an historic shipping town located approximately 8 miles north west of Grimsby, 22 miles east of Scunthorpe and 28 miles south of Hull
The town benefits from good road communications and is serviced by the A180, linking the town with Grimsby to the south east and the M180 just 9 miles to the west
There are over 37,700 people living within 15 minutes of Immingham rising to over 236,000 people living within 30 minutes
The town is rapidly expanding with plans to build over 700 new homes
Immingham is also a thriving industrial town with trade centred on the Port of Grimsby and Port of Immingham, which is the UK’s largest Port
The subject property forms part of the town centre for Immingham which was recently subject to a £10 million redevelopment
45,286 sq ft supermarket that has recently been re-fitted to trade as Jack’s – Tesco’s new discount trading fascia
Long leasehold for a term of 999 years from 30 November 1995 (976 years unexpired) from Cleethorpes Borough Council at a peppercorn rent
Let to Tesco Stores Limited, trading as Jack’s, for a further 20.9 years (10.9 years term certain) on a fully repairing and insuring lease
The passing rent is £679,290 p.a. (£15.00 per sq ft) and is reviewed five yearly on an upward only basis linked to the Retail Prices Index with a collar of 1.00% p.a. and cap of 4% p.a.
The next review being 5th September 2019 - vendor will top the rent up to £760,000 p.a.
Tesco Stores Limited have an undoubted covenant with a ‘5A1 / Minimum Risk’ credit rating from Dun & Bradstreet with a reported turnover of over £40bn in 2017
We are instructed to seek offers in excess of £10,960,000 subject to contract and exclusive of VAT, which reflects an attractive Net Initial Yield of 6.50% on the basis the rent is topped up and assuming purchaser’s costs of 6.70%
A purchase at this price produces an estimated running yield at next review (Sept 2024) of 7.50%
Contact Ben Rose, Sammy Whittaker or our joint agent Ben Turquet of Harvey Spack Field