Negotiations for sale of Tesco and Subway in Weymouth

A prospective buyer has come forward after the Wyke Regis Tesco Express and adjoining Subway sandwich restaurant at 67 Portland Road went on the market for £2.5 million last year. The sale also includes four residential apartments above the Tesco building, which are let privately.

Estate agents Savills, marketing the property, says it is of 'far superior quality compared to local competition' due to its prominent location. The convenience store and takeaway unit is situated on the only route through to Portland - 'ideally positioned to service the surrounding population of Wyke Regis, as well as Portland and tourists to the area,' the estate agents note.

Tesco, Subway and four residential flats on Portland Road, Weymouth are up for sale

Yesterday a spokesman for Savills confirmed that negotiations for the sale are underway, "with an announcement expected by end of January."

The 0.4 acre site, including the flats, represents a total size of 7,520 square foot and includes the customer car park comprising 18 parking spaces, four of which are reserved for the residential flats.

The complex was purpose-built on land occupied by the former Texaco petrol station, which was demolished in 2018 to make way for the development.

The former Texaco petrol station on Portland Road was demolished to make way for the complex

The building is described as brick-built, rendered in part with Trespa ‘slate’ cladding, featuring Juliet balconies on the flats along the front and north west side of the property.

On the first floor are two two-bedroomed and two one-bedroomed flats, 'all fitted to a high specification' and with separate access to the shops.

• READ MORE: Wyke Stores to close after 160 years over competition with nearby Tesco

The site is offered as a modern freehold investment opportunity, with the Tesco branch let on a 20 year lease until 2038, currently at a rate of £85,000 per year, while Subway is let on a 15 year lease until 2033, currently at £15,000 per year.

The one-bed flats fetch £600 pcm while a rent of £775 pcm is charged for each of the two-bedroomed properties. They are valued at around £160,000, £165,000, £190,000 and £200,000 

According to the listing, a total commercial income of £100,000 per annum is generated from the site - 85 per cent from Tesco and 15 per cent coming from the Subway branch.