Connection Capital and Riverside Capital today announce the acquisition of a prime site convenience store and petrol filling station in Sittingbourne, Kent. The property is currently let to Somerfield Stores and includes a full parent guarantee provided by Co-operative Group Food Limited. The lease expires in 2028, therefore providing 15 years of secure unbroken income from an undoubted tenant covenant.
The total purchase price for the freehold is £2.62m representing a net initial yield of 8.15%. Connection Capital clients have invested £1.40m of equity. Bank Santander is providing a further £1.57m as a loan facility. The property has been acquired from a receiver having been re-possessed by the previous owner’s lending bank after a covenant breach.
The property is located on a prominent and profitable trading site in an expanding area of Kent with excellent transport links. It also benefits from an adjacent McDonalds drive-thru, Premier Inn hotel and Brewer’s Fayre public house.
Claire Madden, Founding Partner at Connection Capital, said, “This is another excellent deal for our clients and demonstrates the range and diversity of our investments. Due to our ability to source deals like this through our close relationship with Riverside Capital, our clients can benefit from acquiring assets at keen prices. This is an excellent time in the cycle to be investing”.
Ashley Wilcox, Investment Director at Riverside Capital, says, “The Sittingbourne acquisition is a great example of matching a quality property with the needs of investors. Over a maximum five year period, Connection Capital investors can expect a targeted annual income of 5% from this highly profitable business”.