32E Scotch Street, Dungannon, BT70 1BD

Offers in excess of £695,000 exclusive 

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Property Description

  • Retail investment in the well known town of Dungannon
  • Purpose built Iceland Foodstore extending to c. 7,105 sq ft
  • Fully let to Iceland Foods Ltd expiring 31 July 2027
  • Passing rent £55,500 per annum exclusive
  • Asking price £695,000 reflecting a Net Initial Yield of 7.58% after allowing for purchasers cost at 5.29%
Dungannon is a large mid Ulster town situated at the end of the M1 motorway approximately 42 miles south west of Belfast. The town boasts a strong retail core with a traditional high street complemented by the Oaks Shopping Centre on the outskirts.

The subject property is situated close to the town centre accessed off Scotch Street. The property fronts on to the Scotch Street (South) public car park with nearby occupiers including McCrystal Fine Furnishings, Kronos Audio Visual, New Look and DV8.

The property comprises a purpose built Iceland Foodstore accessed via Scotch Street centre and the Scotch Street (South) car park. The building is of steel frame construction with a facing brick exterior and flat roof over. The unit has been fully fitted to the Iceland corporate specification including dry goods and cold stores to the rear. Ancillary staff and office accommodation is provided at first floor level.

Tenancy

Tenant: Iceland Foods Ltd.
Term: Expiring 31 July 2027. The lease was extended in September 2018 for a further 6 years from 1 September 2021.
Passing Rent: £55,500 per annum exclusive.
Note: The tenant was granted a reduced rent of £27,750 from 1 August 2018 - 31 January 2020. The balance of the rent reduction is to be deducted from the purchase price until January 2020.

Tenant Covenant
Iceland is a well know food retailer with over 900 stores throughout the UK (source www.iceland.co.uk).

For the year ended 31 March 2019 Iceland Foods Ltd reported a turnover of £3.022 billion, a pre-tax profit of £31.2 million and a net worth of £792.9 million (source Red Flag Alert).

Proposal
We are instructed to seek offers in excess of £695,000 exclusive, subject to contract.

A purchase at this level would reflect a Net Initial Yield of 7.58% after allowing for purchasers costs at 5.29%.

EPC - D79

Description Area
Ground floor6425 square feet
First floor680 square feet
Total Area:

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