Offers over £1,975,000 < Back to search results
Hereford is a Cathedral City in the West Midlands county of Herefordshire. The largest business sectors in Herefordshire are manufacturing, defence and security, food and drink production, agriculture and tourism. Well-known businesses include Bulmers (Heineken), Cargill, Weston’s Cider, Bloor Homes and Tyrrells Crisps. Hereford is well connected to the motorway network via the A49 to the M50, linking South Wales to the West Midlands. Hereford train station has direct and regular rail links to London, Birmingham, Manchester and Cardiff.
The property is located 1 mile south of Hereford city centre on the A465 (Belmont Road). The A465 is an arterial road into Hereford running south west towards Abergavenny in Wales. The property occupies a prominent position on the A465 with direct access into the forecourt car parking. The surrounding area is predominantly residential with a primary school playing field to the rear of the property. Opposite the property there is a small collection of retail units including a veterinary surgery and off licence. Farmfoods serves as a key local supermarket to the local community. The property is Dominos Pizza’s only store in Hereford.
The property comprises a modern retail outlet of 4 units. Units 1 and 2 are interconnected and utilised as a supermarket. The property is of steel portal frame construction with brick clad elevations and front display windows along the entire front elevation. There is a large forecourt providing 31 customer car spaces to the front, with a wide access point to Belmont Road. To the rear/side of the site is a small yard.
The property is let to 3 tenants producing a passing rent of £126,000 per annum reflecting a low average rent of £11.34 per sq ft, rising to £131,000 per annum in 2025. 67% of the income is let to the strong covenant of Farmfoods Limited.
Unit 4 is currently let to Greggs plc on a 10 year lease from 10th November 2017 with a break option in 2022. Terms are agreed to assign the lease to Gloden Limited with the current break date (November 2022) to be moved out to March 2024.
Please download the brochure for tenancy schedule and covenant assessments.
Subject to Contract
We are instructed to seek offers in excess of £1,975,000 (One Million, Nine Hundred and Seventy-Five Thousand Pounds), subject to contract and exclusive of VAT. Assuming purchasers costs of 6.27%, this reflects a net initial yield of 6.00%, rising to 6.24% in October 2025, and a capital value of £178 per sq ft.