MKM Building Supplies, Chichester - Cathedral Business Park, Chichester PO20 1EJ

Prime Freehold Long Income Builders Merchant Investment

Situated in the affluent cathedral city of Chichester, West Sussex

Located prominently on the A27/Bognor Road (A259) roundabout one of the principal arterial gateways to Chichester carrying c.41,000 vehicles per day (2024 estimate)

New build builders merchant and trade counter completed in May 2023 to the tenant’s full approved specification

Total site area of 1.52 acres with low site coverage of 19% Yard overage of approximately 0.80 acres (assuming a standard 40% site cover)

Building extends to 12,510 sq ft (GIA) plus 3,590 sq ft mezzanine

Total floor area of 16,100 sq ft

EPC rating A-14

Located within Chichester’s established trade counter and automotive cluster, with nearby occupiers including Screwfix, Toolstation, Halfords, Magnet, Dulux, Howdens, Jewson and Wolseley

Forms part of a wider, consented mixed-use scheme including further trade/industrial units, hotel and roadside retail

Let to MKM Building Supplies Limited

Undoubted covenant – the UK’s largest independent builders’ merchant with over 130 branches and turnover of £986m in the year to 30 September 2024

Lease guaranteed by MKM Building Supplies (Group) Limited

Fully repairing and insuring lease for a term of 25 years wef 24th May 2023, expiring 23rd May 2048 (22 years unexpired)

Tenant only break option 25th May 2043 (17 years to break)

Initial rent of £310,000 per annum equates to £13.28 psf, applying half rate to the mezzanine and £150,000 per acre to the yard overage

5 yearly upward only rent reviews linked to RPI (collared and capped at 1.5% – 3.5%) annually compounded

Freehold