Convenience Store Investment Sale Completed

Delta Capital Property Investment is pleased to announce the successful sale of a newly developed Co-op convenience store investment in Crawcrook, Gateshead on behalf of Sansec Developments.

The newly constructed unit is fully let to The Co-operative Group Food Ltd, a national covenant with a turnover exceeding £8 billion and a Dun & Bradstreet rating of 5A1. The lease features a 15-year term, without breaks, providing a secure income stream for the new owner.

The lease is subject to five-yearly, CPI-linked rent reviews, with a collar and cap of 1% and 3% respectively. The initial rent is £80,000 per annum, with an expected reversionary rent of around £92,742 per annum from year 5, based on anticipated compound uplift. The relocation from the existing Co-op store, which has operated in Crawcrook for over 30 years, underscores the retailer's commitment to the location. The property benefits from limited convenience store competition within Crawcrook.

Daniel Capobasso of Delta Capital Property Investment commented: "Demand remains strong for secure property investments leased to convenience operators in established suburban locations. With declining interest rates and diminishing returns from other investments, we expect this demand to strengthen."

Nicholas Sherling, Investment Agent at RIB, representing the purchaser, commented: "We are delighted to have secured this newly developed convenience store for our client. The 15-year lease provides a secure income stream, and the building has been finished to an excellent standard."

Huge thanks to Chris Jackson and the team at Sintons LLP for their invaluable work in completing this transaction too!

Delta Capital Property Investment has a number of similar investment opportunities coming to market in the coming months. Investors are encouraged to contact Delta Capital Property Investment to register their live requirements. Subscribe to our mailing list here: https://lnkd.in/eF3Kk3pr