Lunson Mitchenall have successfully negotiated the acquisition of a petrol filling station investment in Chelmsford on behalf of Chelmsford City Council from Fusion Stations Ltd for £3.7m, reflecting a net initial yield of 5.88%.
The investment comprised of an Esso petrol filling station with a Morrisons convenience store located on a prominent 0.42 acre corner site with a dual frontage roadside position. Located to the west of the City Centre on the busy A1016 carriageway / Waterhouse Lane.
The property is let to Rontec Group Ltd (on assignment from Co-Operative Group Ltd) for a term of 20 years expiring June 2027 at a current passing rent of £231,608 pa. The rent is subject to 2% fixed annual increases throughout the term.
James Cogavin, Director in Lunson Mitchenall’s Investment teams commented “The ability to secure an asset with fixed annual uplifts, with a potential reversion to in excess of 7% and eight years until lease expiry is a good result for our client who was looking to secure a predictable income stream in order to fund local services within the City of Chelmsford. The property sits on a large site which will provide the Council with options in the future for town centre development”.