The subjects comprise a 3,089 sq ft open plan retail unit with glazed sales frontage onto both Eldon Street and Fox Street. The main retail and service entrances are on Fox Street, where there is also 5 dedicated car parking spaces.
Location
Greenock is the administrative centre for the Inverclyde area and is located approximately 20 miles west of Glasgow. The town forms a contiguous urban area along the southern bank of the River Clyde with Gourock to the west and Port Glasgow to the east. Greenock has a population of 69,000 and a primary catchment population of 108,000.
The subjects occupy a highly visible roadside position on the corner of Eldon Street/A770 and Fox Street, approximately 1km west of Greenock Town Centre. The A770 is a busy arterial route which runs from Greenock Town Centre to Gourock. The subjects are located in Greenock West, an affluent residential area characterised by rows of grand Victorian villas and tenements.
Terms
TENURE
Heritable (Scottish Equivalent to English Freehold).
TENANCY
The subjects are let to Co-operative Group Food Limited on a new 15 year full repairing and insuring lease from the date of entry. The Tenant has an option to extend the lease by a period of 10 years. The initial passing rent is £48,000 per annum (£15.54 per sq ft), subject to upwards only compounded RPI rent reviews in years 5 and 10, collared at 1% and capped at 4% per annum. Tenant fit out works are under way and the store should be open and trading by xx November 2013.
COVENANT
Co-operative Group Food Limited is a wholly owned subsidiary of The Co-operative Group, the UK’s largest mutual business, founded in 1844. It is the UK’s fifth biggest food retailer and the leading convenience store operator in the country. In addition to this, it is a major financial services provider, and one of the nation’s leading providers of pharmacy, travel and funeralcare services. The Group employs more than 100,000 people and has an annual turnover in excess of £13bn. Co-operative Group Food Ltd has over 2,800 stores across the UK and over 74,000 employees.The company’s latest financial information is as follows;
PLANNING
The property benefits from Class 1 (Retail) consent.
PROPOSAL
We are instructed to seek offers in excess of £723,500 for our client’s heritable interest which based on full purchasers costs of 5.8% reflects a net initial yield of 6.25%.
VAT
The property has been elected for VAT purposes with VAT being payable over and above the purchase price. However, we envisage that a sale will be affected by way of a Transfer of a Going Concern (TOGC)
Specification
• Highly visible roadside position
• New 15 year lease to Co-operative Group Food Limited
• Initial passing rent of £48,000 per annum (£15.54 sq ft)
• Five yearly Rent Reviews to RPI (1% collar and 4% cap)
• Offers over £723,500 reflecting a net initial yield of 6.25%