REF 5785

Sunderland City Centre Off Licence

Sunderland

The Location

The business is located in The Bridges shopping centre in Sunderland town centre, Tyne & Wear and within catchment zone of a densely populated area. The Bridges is a shopping centre based in the city centre and contains over 85 stores, reportedly having received 15 million shopping visits in 2019.

The Business

This is a very well established Newsagent & Tobacconist which benefits from high footfall and equally high tobacco and alcohol sales. This is a very profitable business and generates high income from commissions from services, Lottery cira £2,000/month, Paypoint circa £600/month and ATM circa £4,800/year. Further commissions from Ignite are £250/quarter and during summer months baggage deposit company Left-it provide an income circa £100/month.

There is currently a passing rent of £30,000 per annum along with the service charge payable of £366/month. Business rates have been discounted 100% since April 2020, previously payable at £800/month. Income from commissions totalling around £36,000 currently outweigh the expenses. The business owner has specified that the business operates on an overall GP margin of 18%. The percentage of tobacco sales is around 60% of overall sales, however the current selling price is set at a 10% profit margin

The business is run by the owner with her brother and 3 members of staff (TUPE rules apply). There is currently a 5 year renewable lease in place. Owner is selling due to other business commitments.

The Opportunity

There is huge development within Sunderland town centre including local housing developments and student accommodation, all of which continues to increase the population here. There is scope to increase the opening hours beyond the 5pm closing time to take advantage of the premises licence hours.

Notice

All information provided is subject to the standard terms and conditions of A1 Businesses Ltd. (trading as A1 Businesses for Sale). See our disclaimer page for more details.

Viewings

Any viewings for the business and/or property are to be made strictly by appointment only through A1 Businesses for Sale. No approach should be made directly to the owner or any of their employees.

Price

£94,950

Tenure

Leasehold

Gross Annual Income

£1,196,000

Annual Rent

£30,000

Rateable Value*

£30,000

* (Note: The rateable value is used to calculate your rates bill so this is not the amount you will pay) click here for more information

Trading Hours
Monday to Sunday 8:00am-5:00pm

Premises Licence
Monday to Sunday 8:00am-11:00pm

Shop Measurements
Shop Trading Area: 47.7m² (513ft²)
Stockroom Area: 34.1m² (367ft²)
Office Area 8.2m² (88ft²)

Staff Employed
Owner, family member and 3 part time staff on 16 hours each (TUPE rules apply)

Stock Value Estimate
£35,000

Lease Terms
5 year renewable lease. 6 months rental deposit required (£15,000+VAT)

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