McDONALD’S BLAYDON SHOPPING CENTRE - Allsop

DRIVE-THRU INVESTMENT LET TO MCDONALDS FOR 23 YEARS (CERTAIN)

McDONALD’S BLAYDON SHOPPING CENTREWESLEY COURT, THE PRECINCT, BLAYDON-ON-TYNE NE21 5BT



Newcastle-upon-Tyne

River Tyne

Blaydon Shopping Centre

Blaydon Railway Station

Blaydon Shopping Centre Bus Stop

Shibon Nature Reserve

Morrisons Supermarket

Gateshead

A1

Outline for indicative purposes only.

A695

A695

Reece Innovation Centre

INVESTMENT CONSIDERATIONS ■ Long-let drive-thru investment located in Blaydon, Gateshead ■ Modern, purpose built drive-thru unit totalling 3,128 sq ft (290.6 sq m) ■ Strategically located next to Blaydon Shopping Centre with immediate access

to Blaydon railway and bus stations as well as the busy A695 ■ Securely let to the undoubted covenant of McDonald’s Restaurants Limited (5A1) ■ Long unexpired term of 23 years (certain) ■ Low passing Rent of £74,758.77 per annum subject to 5 yearly rent reviews ■ McDonalds have recently extended their lease showing their commitment to the unit

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/mcdonaldsblaydon

PROPOSAL Offers sought in excess of £1,343,000 (One Million, Three Hundred and Forty Three Thousand Pounds), which reflects an attractive Net Initial Yield of 5.25%, assuming purchasers costs of 6.02%



LOCATIONBlaydon is located in the North East of England in the Metropolitan Borough of Gateshead. The town is approximately 8 km (5 miles) west of Newcastle Upon Tyne, 26 km (16 miles) north of Durham and 26 km (16 miles) north-west of Sunderland.The town benefits from good road communications with the A1 Western Bypass approximately 1.6 km (1 mile) to the east, connecting with Junction 34 of the A1(M) Motorway to the south-east. The A1 also connects with the A69 to the north, with the A695 and B6317 both leading into Blaydon.In addition, the town is connected to the national railway network with a fastest journey time to London Kings Cross of 3 hours 32 minutes. Direct rail connections are also provided to Newcastle of approximately 15 minutes. Newcastle International Airport is approximately 13 km (8 miles) to the north.

SITUATIONThe property is situated centrally in Blaydon town centre within the core retailing and leisure pitch, directly adjacent to Blaydon Railway Station. The property is accessed off the A695 which forms the main arterial route west to Newcastle city centre. Blaydon Bus Stop is located directly south of the property providing regular services around Blaydon and Gateshead.The property forms part of the wider Blaydon Shopping Centre, which forms the primary retail offering in Blaydon. In turn the property benefits from excellent football and passing trade. Immediate occupiers include; Costa, Boots, B&M, Lloyds Bank, Specsavers, Iceland and a large Morrison supermarket.



A68

A69

A69

A696

A19

A19

A19

A167

A1

A1

A184

A194

A1018

A1300

A690

A693

A691

A694

A692

SUNDERLANDSUNDERLAND

BLAYDONBLAYDON

NEWCASTLEUPON TYNENEWCASTLEUPON TYNE

Gateshead

Durham

Washington

Houghtonle Spring

Chester-Le-Street

Birtley

Hartlepool

A1(M)

A194(M)

Murton

SouthShields

SHIBDON ROAD

KINGFISHER BOULEVARD

A695

STELLA STREET

BRIDGE STREET

SUMME RHILL

BLACK LANE

NORTH STREET

BACK LANE

BLAYD ON

BA

NK

SHIBDON BANK

CH

AIN

BRIDGE ROA

D

A695

BLAYDON HIGHWAY A695

A6085

A1

A1

BLAYDON

SHIBDONDENE

SHIBDONDENE

BLAYDONINDUSTRIAL PARK

BLAYDONINDUSTRIAL PARK

BLAYDONTRADE PARK

BLAYDONTRADE PARK

BLAYDON HAUGHSINDUSTRIAL ESTATEBLAYDON HAUGHS

INDUSTRIAL ESTATE

SHIBDONBUSINESS PARK

SHIBDONBUSINESS PARK

ST THOMAS MORECOMMUNITY

SPORTS CENTRE

RIVER TYNE

© Crown Copyright, ES 100004106. For identification purposes only.

4 The Precinct, Wesley Court, Blaydon-on-Tyne, NE21 5BT

created on Plotted Scale - 1:1,250

Misrepresentation Act: 1. Allsop LLP on their own behalf and on behalf of the instructing party, whose agents Allsop are, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars asto the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop nor any of their members nor any person in their employment has any authority to make or give, any representation or warranty whatsoever inrelation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and apurchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are availableand in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP.

DESCRIPTIONThe property comprises a modern, purpose built drive-thru unit totalling 3,128 sq ft (290.6 sq m) arranged over a single-storey. The detached unit sits on a 0.28 acre site providing a designated drive-thru facility and the right to use a total 40 car parking spaces (located within the area hatched green on the plan). Internally the unit provides a fully fitted restaurant with WC facilities, kitchen area, ancillary offices and storage.In 2012 McDonald’s extended unit from 2,625 sq ft to 3,128 sq ft.

SITEThe property provides a total site area of 0.28 acres.

TENURE241 year, long leasehold interest at a peppercorn rent.

TENANCYThe property is let to McDonald’s Restaurants Limited on a 25 year FRI lease from 29/09/1998. McDonald’s have recently signed a reversionary lease extending the term to 28th September 2043, providing an unexpired term of 23 years. The property is sub-let to Granite Restaurants Ltd (McDonalds franchisee).The property is let on two conterminous leases producing a low total passing rent of £74,758.77 per annum. The first lease is on the property at passing rent of £69,562.50 per annum, reflecting £26.50 psf (based on an area of 2,625 sq ft). The second lease is for the drive-thru road at £5,196.27 per annum. The leases are subject to 5 yearly, upwards only rent reviews to the open market rent. The next review is on 29/09/2023. The tenant will benefit from a total of 9 months rent free split between 9 months half rent from 25/12/2020 with a further 9 months half rent from 29/09/2023. This will be topped-up by the Vendor.McDonalds contributes to a service charge for the wider Blaydon Shopping Centre. The current service charge allocation is £4,001.16 per annum.



COVENANTMcDonald’s Restaurants is the world’s most recognised fast food operator in the UK with over 36,000 restaurants across the world. The company is also the world’s largest chain of quick service

restaurants serving over 10 million customers daily.There are currently in excess of 1,300 McDonald’s restaurants in the UK employing over 38,000 people. McDonalds continues to expand its UK operations with 40 new restaurants opening 2019 and further 60 restaurant forecast to open before the close of 2020 forming part of an expansion plan worth in excess of £1billion.The latest reported financials for McDonalds Restaurants Limited (01002769):

2016 2017 2018

Turnover £1,574,237,00 £1,593,489,000 £1,514,374,000

Pre-Tax Profit £341,009,000 £341,009,000 £406,278,000

Total Net Worth £1,044,866,000 £1,332,438,000 £1,098,986,000

Experian Score: 97 (Very Low Risk)Dunn & Bradstreet: 5A1

MARKET ANALYSISInvestment and rental market data:

Date Address Tenant Rent (£p.a.) Rent (£p.s.f.)

Unexpired Term (years)

Price NIY

Available Subject Property McDonalds £74,758 £26.50* 23 £1,343,000 5.25%

Available McDonalds Portfolio McDonalds £645,830 £35.00 17 £7,100,000 3.50%

Jan-20 Hastings Road, Tunbridge Wells Burger King (franchise) £100,000 £20.10 24 £1,995,000 4.72%

Nov-19 Bath Road, Gloucester Costa Limited £80,000 £44.44 15 £1,500,000 5.25%

Jun-19 Dartford, London Starbucks £125,000 £55.14 16 £2,500,000 4.50%

Feb-19 Wyvern Retail Park , Derby KFC (franchise) £71,050 £22.74 7 £1,300,000 5.16%



*Rent £p.s.f. excludes the drive-thru road which is let on a separate lease.

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 01.21

James Salmon07720 [email protected]

For further information or to make arrangements for viewing please contact:

Siobhan Badman07884 [email protected] allsop.co.uk

PROPOSALOffers sought in excess of £1,343,000 (One Million, Three Hundred and Forty Three Thousand Pounds), which reflects an attractive Net Initial Yield of 5.25%, assuming purchasers costs of 6.02%

EPCThe property has an EPC rating of D(81).

VATThe property has been elected for VAT and it is anticipated that the transaction will be treated as a TOGC.

ANTI-MONEY-LAUNDERINGA successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/mcdonaldsblaydon

McDONALD’S BLAYDON SHOPPING CENTRE - Allsop

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