Under Offer

Plymouth – Prominent City Centre Supermarket let to Tesco for c.31 years

Tesco, 29-31 New George Street, Plymouth, PL1 1RA

Offers in excess of £6,310,000

Property Type:
Commercial
Sub Type:
Retail
Tenure:
Freehold
Net Initial Yield:
5.5%

Income

£370,000 pa

Description

  • Prominent City Centre supermarket investment located in the heart of Plymouth arranged over basement, ground and 3 upper floors.
  • Securely let to Tesco Stores Limited until June 2053 with no breaks providing an unexpired term of approximately 31 years.
  • Current net rent passing of £370,000 pa.
  • The property comprises an extensive corner building extending to c. 87,107 sq ft GIA.
  • Tesco’s passing rent currently equates to £4.59 psf overall.
  • Part of the property is sub-let to TJX UK (t/a TK Maxx) until 4th August 2028 at a sub-rent of £250,000 per annum (reduced to £125,000 until August 2022).
  • Long Leasehold – 999 year from 2007.
  • The lease includes a provision for upwards and downwards rent reviews every five years, with the next in January 2023 Proposal.
  • Offers sought in excess of £6,310,000 subject to contract and exclusive of VAT.  A purchase at this level reflects a Net Initial Yield of 5.50% assuming purchaser’s costs of 6.65%.