Tesco Investment, Burgh Old Road, Skegness, PE25 2LJ

Description
The property has been constructed in accordance with the planning consent granted by East Lindsey District Council under reference S/153/01831/21 on 9th May 2022.

The scheme has been designed to reflect the characteristics of the location and provide the local community with a vital amenity. The new build unit is scheduled to be completed by the end of the summer.

Location
The site is located on Burgh Old Road in Skegness, PE25 2LJ. This road is situated in the western part of the town, within a mainly residential area. Skegness, located approximately 64 km (40 miles) east of Lincoln, 162 km (100 miles) southeast of Sheffield, and 228 km (142 miles) north of London, benefits from excellent road connectivity. The A52 provides direct access to the town, linking it to Grantham and Nottingham to the west. Additionally, the A158 connects Skegness to Lincoln, situated 64 km (40 miles) to the west.

The new convenience store is positioned adjacent to the Welcome Inn public house (Punch Tavern Tenancy). Also, Skegness Fields Caravan Park is within walking distance of the store. Access and servicing is via the east off Burgh Old Road.

Tenancy
The property is to be let on a new Full Repairing and Insuring lease to Tesco for a term of 15 years term certain, with no breaks, at a commencing rent of £78,000 per annum. The store, a new build scheduled for completion by the end of summer, spans 4,000 sq ft and includes 12 parking spaces. The lease includes 5 yearly rent reviews in line with the Consumer Price Index (CPI), subject to a collar and cap of 1% and 4%.

Tenure
The freehold interest is being sold subject to the new tenancy.

Rateable value
The commercial unit’s Rateable Value will be assessed upon completion of the development.

EPC
The Energy Performance Certificate will be provided on completion of the tenant‘s fit out works.

Price
The investment is available at a guide price of £1.4 million, which represents a NIY of 5.25%. Completion of the purchase will be expected simultaneously with completion of the lease.

VAT
The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC.

Anti-money laundering regulations
In accordance with Anti-Money Laundering Regulations, the preferred purchaser will be required to provide identification and proof of address, prior to exchange.

Viewings
For a formal viewing, strictly by appointment with Savills.