Unit 2, Station Square Retail Park, Molesworth Street, Cookstown, BT80 8PA

INVESTMENT SUMMARY

Let to Argos Ltd (Net assets £527 million), owned by FTSE 100 company J Sainsbury plc, for the term of 10 years and 5 days from 26th April 2019.

Argos Ltd has an estimated 29 million store customers and nearly 1 billion online customers per year.  

Rent £87,500 per annum, exclusive.  Rent review and tenant only break option at end of Year 5.  

Price: Offers in the region of £900,000, exclusive.  A purchase at this price will reflect an initial yield of 9.2% after allowing for purchasers costs at 5.6%.

 

ACCOMMODATION

Ground Floor approx. 953 m2 (10,260 ft2) plus mezzanine

 

TENANCY DETAILS

The property is let to Argos Limited on a full repairing and insuring lease for a term of 10 years and 5 days from 26th April 2019, expiring on 30th April 2029.  There is a rent review and tenant only break clause at the end of Year 5 (25th April 2024).  If the tenant does not exercise the break clause, the Landlord will give three months rent free from 25th April 2024.  

The current passing rent is £87,500 per annum, exclusive.

 

 

TENANT COVENANT

Argos Limited (Co. No. 01081551), has reported the following figures:-

                                                       9 March 2019                      10 March 2018

Revenue                                       £4,240,797,000                     £4,162,557,000

Pre-Tax Profits (loss)                        (£57,868,000)*                    (£145,305,000)*

Net Assets                                        £527,300,000                       £571,055,000

 *Execptional costs totalling £53.6 million for 2019 (2018: £148.9m) were in respect of costs associated with the integration of Argos into the J Sainsbury Group, following acquisition.  

J Sainsbury’s plc (Co. No. 00185647), has reported the following figures:-

                                                        7 March 2020                   10 March 2019

Revenue                                        £28,993,000,000               £29,007,000,000

Pre-Tax Profits                                 £255,000,000                    £202,000,000

Net Assets                                      £7,773,000,000                 £7,782,000,000

 

TITLE

We understand the property is held by way of a Lease of 999 years from 29th February 2000, at a rent of £0.05, if demanded.  

 

RATEABLE VALUE

£98,500.  

Rate in £ for 2021/2022 is £0.5137, hence rates payable for current year should be approx. £50,600.  

Note, however, due to the Covid 19 pandemic, no rates are payable until 31st March 2022 at which stage the situation will be reviewed.  

 

VAT

We understand that the property is elected for VAT.  However, it is anticipated that a sale could be treated as a Transfer of a Going Concern (TOGC).

 

PROPOSAL

We are seeking offers in the region of £900,000, exclusive.  A purchase at this price would reflect an initial yield of 9.2% after allowing for purchasers costs of 5.6%.

 

For further details please see attached brochure or contact Barney Goan on 02890 500 100.