For Sale £2,300,000 - Investment
Petrol Filling Station/Convenience Store Investment
Star Lane Head
East Lancashire Road
Let to Rontec – on assignment from Co-operative Foodstores – Until June 2027
Fixed Annual Rental Increases
The property is located on the edge of the town of Golborne which is approximately 5 miles north of Warrington, 12 miles west of Manchester, and 19 miles east of Liverpool. J22 and J23 of the M6 motorway are both within 2.5 miles of the subject property, as is the M60 motorway.
The property occupies a prominent location with excellent frontage at a traffic light junction of the East Lancashire Road (A580) and Newton Road (A572). The A580 is the principle dual carriageway linking the M6 motorway to Manchester city centre in the east, and Liverpool to the west.
The immediate surrounding areas include the residential towns of Golborne and Lowton, which are suburbs of Warrington.
The property comprises a convenience store and petrol filling station. It occupies a site of approximately of 0.10 HA (0.25 acres), and has approximately 80m of frontage to the A580 and A572.
The convenience store comprises a retail area of approximately 134.7 sq m (1,450 sq ft). The building is a regular shape, single-storey building of block and brickwork construction, with a flat roof, which is positioned to the north of the site.
Externally, the forecourt if part tarmac, and part hard-standing, and has a dual vehicle entrance covered by a canopy, supported by four pillars. The petrol filling pumps are positioned in the 4 square format, providing 6 nozzles per pump. The building also has an ATM which fronts the forecourt elevation. There are 5 customer car parking spaces, including one disabled space, with a further 2 staff car parking spaces.
The property is let to Rontec Properties (No. 4) Limited (with a guarantee from Rontec Group Limited – now known as Rontec Roadside Retail Limited), on assignment from Co-Operative Foodstores Limited (Guarantor – Co-operative Group Food Limited). The lease is on full repairing and insuring terms for 20 years from 21 June 2007. The lease is contracted outside Section 24-28 of the Landlord & Tenant Act 1954, and the tenant has the option to renew for a further term of 15 or 20 years following the expiry of the contractual term.
The rent passing is £139,507.00 pa, subject to 2% annual rent increases. The next increase is with effect from the 20 June 2020, when the rent will increase to £142,297.00 pa, and the vendor will top up the rent to this figure from the date of completion.
20 June 2021 £145,143.00 21 June 2025 £157,107.00
20 June 2022 £148,046.00 21 June 2026 £160,249.00
20 June 2023 £151,006.00 21 June 2027 £163,454.00
21 June 2024 £154,027.00
Rontec operate from approximately 240 forecourts throughout the UK and is one of the largest UK forecourt retailers. The company was formed in June 2011 and is led by Gerald Ronson, the highly experienced fuel retailer and founder of Heron Service Stations in 1996. In 2016 Rontec acquired a package of 40 sites from the Co-op across England and Wales, of which this site was one. Rontec Properties (No. 4) Limited reported the figures in the downloadable PDF in their latest accounts.
An Energy Performance Certificate will be available upon request.
The property has been elected for VAT and therefore, this will be payable on the purchase price. However, it is anticipated the sale will be dealt with by way of a transfer of a going concern.
In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
We are instructed to seek a price of £2,300,000.00 (Two Million, Three Hundred Thousand Pounds) for our client’s freehold interest, subject to contract and exclusive of VAT. A purchase price at this level would equate to a net initial yield of 5.82% allowing for normal purchaser’s costs.