• Prominent roadside investment

• Refurbished retail unit with substantial car parking

• Let to secure covenants of Papa Johns (Net Assets £28m) and Indigo Sun (Net Assets £8m)

• Papa John’s, being a takeaway & delivery food hot food retailer, is reported to have performed strongly during the Covid pandemic

• Lease expiries January 2034 (Indigo) and September 2033 (Papa John’s)

• Excellent payment histories throughout Covid. No rent arrears

• Offers in the region of £880,000 subject to contract

• 6.0% net initial yield

The subject property is situated in a highly prominent roadside position fronting the busy Stockport Road (A6017), which is the main thoroughfare leading north into Denton town centre and south to Haughton Green.  A bus stop is located less than 0.1 miles from the property, providing convenient links into Manchester City Centre.

 The site benefits from vehicular access from both Stockport Road and Market Street.

 The property is situated directly opposite a Morrisons Superstore with other nearby retailers including Vets4Pets, Pizza Hut and Subway.

The property comprises a relatively recently refurbished retail unit which has been divided into three units which is currently let to two tenants: one occupying Unit 1 and the other occupying Units 2 & 3.  Each unit has been fitted out by the tenant to their usual corporate style.

The site benefits from two frontage. The entrance is from Stockport Road and the exit on to Market Street. Access to the site is provided via a large external surface car park with 25 car parking spaces two of which are for disabled use. This provides a generous car parking ratio of 1:12.7 sq m / 136 sq ft.

The recent refurbishment works included:

• Modification to shop fronts

• Cleaning of all external cladding

• Installation of two separate water supplies

• Installation of two new electricity supplies (one of which is 200 amp)

• New car park demarcations

• Installation of 6 cycle parking spaces

• Installation of bin store

• Installation of plant area

• Repainting of fences and gates

The property provides the following Net Internal Areas (please see the floor plans provided):

The site occupies an area of 0.1093 hectares (0.27 acres) providing a low site cover in the order of 29%.

A Phase 1 Environmental Liability Review was undertaken by RPS in October 2017 which concluded that “the risk of an environmental liability relating to ground contamination is considered to be low to moderate in its current retail use and form.”

A copy of this report is available to download and a reliance letter will be provided from the consultants for a purchaser at a cost of £500 + VAT

Unit 1

Let to Papa John’s (GB) Ltd for a term of 15 years from 21^st September 2018, expiring 20^th September 2033 at an annual rent of £20,000 per annum.  The tenant has a break option on 20^th September 2028, subject to 6 months’ prior written notice. The lease provided for a six months’ rent-free period.

The tenant may underlet the premises on identical terms on a ‘franchise underlease’ basis, without consent, if underlet to a Papa John’s franchisee.

The lease benefits from 5 yearly upwards only rent reviews.  The tenant has an option to renew the lease on identical terms for a further 15 years, subject to serving 3 months’ written notice prior to the expiry of the term, save that there will be a rent review on day one of the term.

The unit is let on effectively full repairing and insuring terms, save the tenant is not liable for inherent defects.

Units 2 & 3

Let to Indigo Sun Retail Limited for a term of 15 years from 25^th January 2019, expiring 24^th January 2034 at an annual rent of £36,000 per annum.  The tenant had a break option on 24^th January 2029 which was removed in September 2020 for which the tenant benefitted from a 50% rent payment at 29^th September 2020.

The lease benefits from 5 yearly upwards only rent reviews.  The unit is let on effectively full repairing and insuring terms.

The tenants have maintained excellent payment histories during the Covid pandemic. 

There are not rent arrears as can be seen on the attached rent payment histories.

Papa Johns (GB) Limited (Co. No. 02569801) has reported the following figures:

Papa John’s (GB) Ltd is a subsidiary of Papa Johns International Inc. Started in the USA by John Schnatter in 1984, Papa John’s reportedly operates in over 5,000 locations in 45 countries. Papa John’s International Inc. provides managerial and financial support to Papa John’s (GB) Limited, which is the UK arm of the business. In their accounts, it is reported that they operate a network of 447 Papa John’s outlets in the UK, all operated by franchisees. For further information please visit https://www.papajohns.co.uk/

It is reported that Papa John’s, being a hot food takeaway and delivery business, has performed strongly during the Covid pandemic.

Indigo Sun Retail Limited (Co. No. SC124986) has reported the following figures:

According to their website, Indigo Sun Retail Limited has been operating since 1993 when the first salon was opened in Stirling, Scotland.  The company now has salons throughout the UK. For further information please visit www.indigosun.co.uk

The property has been registered for VAT.  It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

• An opportunity to acquire a highly prominent convenience retail roadside investment;

• The property has been relatively recently refurbished to provide two new retail units along with a new surface car park;

• The investment provides secure income let to strong covenants;

• The tenants maintained an excellent payment history throughout the Covid pandemic;

• Attractive lot size to an investor;

• A purchase at the asking price reflects an attractive net initial yield.

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