73-75 High Street, Staines - £2.035m NIY 7.35%
Acting on behalf of a private European investor, CWM have acted on the acquisition of the above, high street unit in Staines.
The property is located in the heart of the town center and offers 6 years of income to undoubted banking tenant Lloyds Bank Plc.
Additionally, the upper pars lend themselves to future conversion, subject to planning.
For more information contact Ben Simpson at CWM,
89-103 Queensway & 24-26 The Forum, Stevenage - £6.9m NIY 5.66%
CWM have sold this considerable, mixed use block in Stevenage town centre on behalf of DTZ Investors.
The property comprises a 1950's built, three storey, unbroken parade of shops, storage and office accommodation extending to approximately 53.000 sq ft.
For further information please contact John Miles at CWM.
9 The Grove, Stratford - £2.1m NIY 6.76%
CWM have acquired the long leasehold interest in 9 The Grove, Stratford on behalf of Custodian REIT.
The property comprises mixed use premises of around 6,900 sq ft, let in their entirety to Foxtons Ltd at ground floor and to a Church group at first floor.
For further information, please contact John Miles at CWM.
4 The Cross, Worcester - £2.8m NIY 6.60%
Acting on behalf of BMO Real Estate Partners, CWM have successfully sold the freehold interest of this banking investment to Helmsley Securities Ltd.
The property occupies a prominent location in the centre of Worcester’s retail core and is let in its entirety to Lloyds Bank Plc for a further 9 years. Overall, the freehold comprises 19,535 sq ft with separate access to 10,600 sq ft of office floors accessed from The Avenue. These offices provide future conversion potential.
The freehold was sold for £2,800,000 reflecting a Net Initial Yield of 6.60%.
Andrew McDonald, acting on behalf of BMO, commented: “This is a very good result in line with the client’s high street investment strategy. While offering solid income, the shrinking high street banking presence has led to some uncertainty in this sector and so to achieve this price was particularly satisfying.”
For further information please contact Andrew McDonald or Jamie Whitelaw.
Kursaal Centre, Southend - £7.14m NIY 10.75%
On behalf of AEW UK Core Property Fund, CWM have acquired the long leasehold interest of the iconic Kursaal Centre on Southend’s seafront.
Built in the early 1900’s, the Kursaal Centre opened as the first theme park in the world. It has since been an important music venue, hosting bands including Rod Stewart, Deep Purple and Status Quo. In latter years, it has morphed into an important mixed-use leisure destination on the south coast and is now home to a bowling alley and casino, amongst others. The site provides 45,000 sq ft of vacant space which will be of interest to a variety of occupiers.
The purchase completed at £7.14 million reflecting a Net Initial Yield of 10.75%.
Andrew McDonald, acting on behalf of AEW commented, “This is an important site within Southend’s leisure circuit and will continue to benefit from the wide scale improvements to the town as a whole. Providing 145,000 sq ft of floor space, the purchase represented a low capital value of under £50 psf and just over £2.5 million per acre of prime Southend seafront. We expect the scheme to perform well under new ownership and marketing of the vacant space will commence immediately.”
27/29 & 31A Mill Street, Macclesfield - £1.72m NIY 8.89%
Acting on behalf of a private client, CWM have advised on the acquisition of two retail units on Mill Street in Macclesfield. Let to the strong national covenants of Iceland and Vision Express, the freeholds comprise circa 15,000 sq ft of property in total, situated in the prime pitch of the prosperous Cheshire town, with well configured floor plates suited to the needs of the incumbent retailers.
Iceland had recently agreed a reversionary lease at a rebased rent, demonstrating their commitment to the location while the short expiry on the Vision Express lease presented an immediate asset management opportunity.
Dan Keatings commented, "whilst the high street's ongoing troubles are well documented, opticians and discount food stores continue to demonstrate immunity to the challenges faced elsewhere. As such, we believe this investment offers good income, given the yield and its location in the heart of Macclesfield's retail core."
For further information, please contact Dan Keatings at CWM.
36/40 Northumberland Street, Newcastle - £31.585m NIY 5.41%
Acting on behalf of clients Sports Direct PLC, CWM Retail Property Advisors have acquired a prime retail parade on Northumberland Street in Newcastle for £31,585,000, representing a Net Initial Yield of 5.41%. The property, purchased from Standard Life Aberdeen comprises 3 retail units primarily let to national multiple retailers on FRI leases. The tenants are: H&M, W H Smith and Clas Ohlson. As well as comprising a prime retail parade, the investment also offers various asset management opportunities to improve performance.
Jim Remfry, equity partner at CWM commented: "This is an excellent deal for Sports Direct. There have been several single-let investments change hands in Newcastle over the last few years, some at sub 5% Net Initial Yields, however prime retail parade transaction of this nature in Newcastle are few and far between. To pick it up a yield of 5.41% is an exceptional result. With increased investment in the town including the forthcoming regeneration of Northumberland Street, the prospects for an increased depth of occupational interest and further rental growth are strong."
For more information, please contact Jim Remfry at CWM.
Queen's Building, Queensway, Southampton Debenhams - £23.5m NIY 7.45%
CWM have sold the prominent Debenhams department store in Southampton, on behalf of Aviva Investors. The vast, purpose-built, property comprises some 285,000 sq ft of retail space and occupies a virtual island site of over two and a half acres, overlooking Hogland's Park.
With approximately 17 years unexpired on the lease, the investment offered long income, with fixed annual uplifts of 2.50% initially then the higher of 2.50% fixed and Market Rent from March 2019 onwards.
For further information, please contact John Miles at CWM.
53 George Street, Richmond - £4.4m NIY 4.25%
On behalf of clients of CBRE Global Investors, CWM have sold the freehold of 53 George Street in Richmond.
The property, which is arguably the most prominent on George Street, is let in its entirety to Carphone Warehouse, with the office space in the upper parts sub-let to Quadrant Real Estate Holdings.
Jim Remfry commented, "we were convinced the short unexpired lease term would not impact demand for this investment, given the opportunities for asset management and the excellent re-letting prospects. With the frontage protruding from the surrounding building line, we believe the unit to be one of the most attractive in Richmond to prospective occupiers, theoretically de-risking any tenant flight risk and underpinning the value of the asset in spite of any occupational uncertainty. Ultimately, this viewpoint was vindicated by the price achieved in the open market."
For further information please contact Jim Remfry or Jamie Whitelaw.
3-4 Haymarket, Norwich - £5.16m NIY 6%
CWM have acquired 3-4 Haymarket on behalf of Kames Capital. The property is let to Fat Face, with circa 5 years unexpired and is situated in a 100% prime retailing location on the east side of the pedestrianised Haymarket, Norwich's principal retail thoroughfare.
For further information, please contact John Miles at CWM.
81-109 Crockhamwell Road, Woodley - £6.9m
CWM have acquired 81-109 Crockhamwell Road on behalf of Evolve Estates, for £6.9m. The off-market deal, completed after prolonged negotiations with Fawcett Mead who acted for vendor Schroders, was for 8 adjoining retail units with office and residential accommodation above.
Incumbent retailers in the freehold parade include Iceland, Boots and Santander.
Jim Remfry commented, "we are highly satisfied to complete this protracted deal, which offers our close clients Evolve Estates both immediate income and an opportunity to use their considerable expertise in this market to drive the performance of the asset moving forward."
For further information, please contact Jim Remfry at CWM.
Market Street and Cattlemarket, Loughborough - £5.23m NIY 9.08%
Acting on behalf of our good clients Evolve Estates, CWM purchased a well secured parade of 9 adjoining retail units, a 85 space multi-storey car park and a substantial service yard with a total net income of £507,271.42 pax.
The property was 97% let to national covenants including Specsavers, Greggs, CEX, Brighthouse, Vodafone, Clinton Cards, Paddy Power, Poundland and Euro Car Parks.
Ben Simpson commented “Aside from offering a healthy running yield, the freehold property occupies a large site with future redevelopment potential. The towns significant student population offers interesting repositioning opportunities for the currently under-utilised ancillary retail accommodation and the sizeable service yard to the rear ”.
For further information please contact Ben Simpson at CWM.
Promenade, Cheltenham - £.6.05m NIY 4.98%
On behalf of clients of Knight Frank Investment Management, CWM has sold this prominent retail parade investment along Promenade, Cheltenham. The thoroughfare is where the ‘high end’ and aspirational retailers are primarily located in Cheltenham and offers an attractive retailing environment in this popular Cotswold town.
The property comprises 2 retail units, occupied by Vinegar Hill and Joules on co-terminus leases with just over 5 years to expiry. Arranged over ground, mezzanine and first floors, the units offer attractive and well laid-out trading space and future potential for conversion of the upper levels into alternative uses.
CWM inspected and reported on the property during the Spring of 2017 and used the quieter Summer months to address a couple of management issues together with securing an offer from Vinegar Hill for a reversionary lease post their existing lease expiry. The investment was therefore well presented when offered to the market in the Autumn. After a comprehensive marketing campaign resulting in best-bids, the investment was sold for £6.05 million (4.98% NIY) above the quote price of £6.03 million (5.00% NIY).
Andrew McDonald commented “This is a particularly satisfying result in an uncertain investment market and completed in a rapid time frame after carefully preparing the property for sale throughout 2017. Although the retailing future of Cheltenham looks bright with the forthcoming arrival of John Lewis, we know through experience that seismic shifts to the retail landscape such as this can lead to uncertainty elsewhere in town for a period of time. To achieve ahead of our asking price was an excellent result in these circumstances”
For further information, please contact Andrew McDonald or Dan Keatings
Neal Street, Covent Garden, London - £24.6m
CWM have acquired six buildings in Seven Dials, Covent Garden on behalf of Shaftesbury PLC.
As per the London Stock Exchange announcement dated 20th December 2017, the buildings comprise six shops in the region of 5,200 square feet, with sold off residential accommodation above and are located on Neal Street in London's West End. The current contracted income is circa £600,000 per annum.
Shaftesbury Chief Executive Brian Bickell commented "We are pleased to have secured this important acquisition, which increases our ownership of frontages on the northern section of Neal Street to around 70%. Situated close to the Tottenham Court Road Crossrail hub, the northern end of Neal Street is forecast to see material footfall growth once the Elizabeth Line service starts in December 2018."
"Current rental tones on this part of the street are significantly lower than at the southern end. However, with the benefit of growing footfall, together with the careful curation and coherent tenant selection strategy we will implement, we expect to see this differential in rents to narrow significantly over the medium term."
For further information, please contact Andrew McDonald at CWM.
The Centre, Margate - £3.225m
On behalf of close clients Evolve Estates, CWM have advised on the acquisition of The Centre in Margate. The centrally located shopping centre comprises over 65,000 sq ft of retail space and includes 7 units with frontage to the prime pitch on High Street, as well as a partially covered shopping arcade.
Incumbent retailers include; Poundland, Peacocks, Boots, Lloyds TSB, The Works and Card Factory.
Jim Remfry commented, “the scheme is anchored by cash generative national multiples who trade well within this location while the unlet component of The Centre offers opportunities to enhance the already attractive yield profile further. Looking at Margate at a macro level, the seaside town is undergoing a renaissance, benefitting from a boom of private investment which will support the town’s retail moving forward. As one of the more protracted deals this year which presented its fair share of challenges, we were delighted to complete on this one during December in time for Christmas.”
For further information please contact Jim Remfry at CWM.
Riverlight, Nine Elms Lane, Wandsworth - £5.8m NIY 4.24%
CWM have acquired the retail element of St James’ ‘Riverlight’ development on behalf of the London Borough of Wandsworth. The three commercial units, part of the residential-led mixed use development situated close to Battersea power station on the south bank of the River Thames, are let on the following terms:
Block B – Let to Sainsbury’s on a 15 year lease from August 2016 with a tenant only break at year 10.
Block C – Let to JLL on a 15 year lease from March 2016 with a tenant only break at year 10.
Block 5 – Let to Busy Bees for 25 years from August 2016 with no break.
Jim Remfry at CWM commented, “we quickly identified the council as a likely buyer when we became aware of this off market opportunity, which offered ‘long and strong’ income and the opportunity to deploy capital within their own Borough. Over the past couple of years we have developed a good working relationship with the property team at Wandsworth council, and look forward to doing further deals with them in the future.”
For further information please contact Jim Remfry at CWM
55-56 High Street & 4-5 St. Swithins Street, Worcester - £5.545m NIY 6.50%
On behalf of Custodian REIT Plc, CWM have acquired the above freehold, situated on the busy High Street in Worcester. The property, an attractive and imposing building of brick and framed construction, is single let to Superdrug and comprises some 13,100 sq ft over ground, first and second floors.
Jamie Whitelaw commented “We believe the opportunity to purchase this prominent High Street freehold with both return and double frontage at a NIY of 6.5% is an excellent one for our investors. Looking ahead, the lack of prime occupational voids and rejection of the out of town ‘Worcester Woods’ development should further support rents in the city centre, which have continued to recover steadily in the wake of the recession.”
For further information, please contact Jamie Whitelaw.
264-266 Chiswick High Road, London - £5.1m NIY 4.01%
CWM have completed the off market purchase of this prime retail unit with residential flats above, on behalf of well-known clients Avignon Capital.
The property is located on Chiswick High Road, a vibrant shopping destination in one of the most attractive and affluent suburbs in west London. The retail unit is arranged over the ground floor and let to sportswear brand Mountain Warehouse, trading as Zakti Activewear, with three residential flats above.
The purchase price of £5,100,000 reflects a blended net initial yield of 4.01% and an apportioned yield profile as follows:
Residential Apportionment = £1,840,000 (3.87% NIY) on the flat income.
Commercial Apportionment = £3,260,000 (4.11% NIY) on the retail income.
Bianca Tristao, Investment Analyst at Avignon Capital, commented: “We are always looking to secure strong opportunities for our expanding UK portfolio and we identified the Chiswick asset as a good prospect due to the location, strong covenant and the opportunity to secure rental growth.”
For further information, please contact Ben Simpson or Dan Keatings.
House of Fraser, Exeter - £9.15m NIY 5.04%
Acting on behalf of DTZ Investors, CWM have acquired the House of Fraser department store in Exeter for £9.15m, representing a Net Initial Yield of 5.04%.
Single let to House of Fraser with 21 years unexpired, the investment represented an opportunity to purchase 56,000 sq ft of prime city centre space, positioned between the busy high street at the front and the iconic city cathedral at the rear.
Jim Remfry commented “We are delighted to complete this deal on behalf of our close clients DTZ investors. To acquire such a prominent freehold in this historic city centre at £163psf represents excellent value on a capital value basis and combined with the straightforward asset management provided by the House of Fraser lease, makes this is a highly attractive purchase at this level.”
For any more information please contact Jim Remfry at CWM.
George St. / Cross St./ New Stamford Road, Altrincham - £5.1m NIY 5.43%
Acting for CBRE Global Investors, CWM have completed on a prime leisure block in Altrincham for a purchase price of £5.1m, reflecting a blended Net Initial Yield of 5.43%.
One of the principal commercial centres in Greater Manchester and a highly affluent satellite town, Altrincham has undergone a leisure-led renaissance in recent years, developing its own ‘pull’ as a culinary destination, partially due to the success of the Market House food markets.
Comprising part of the redeveloped Stamford Quarter, the subject block includes freeholds newly let to Nando’s, iconic Canadian Café Tim Hortons, French restaurant Bistro Pierre and local baker Tiley’s, which further complement the quickly improving leisure offering in the town.
Jim Remfry commented “We are impressed with the locally-led vision for Altrincham Town centre, which is now coming on unrecognisably after being impacted by the opening of the Trafford Centre around the turn of the century. This investment offered excellent security of tenure for our client given the WAULT and we were delighted to prevail in the competitive bidding process.”
For any more information please contact Jim Remfry at CWM.
Eagle Buildings, 62/68 Cross Street, Manchester - £4.8m NIY 5.52%
Acting on behalf of Artorius Wealth, CWM advised on the purchase of this trophy asset, situated in prime position in the heart of Manchester’s central retail and business district.
The Grade II listed building incorporates two retail units on the ground floor, occupied by leisure operators Eat and Chop’d, which both benefit from return frontages. Additionally, the three upper floors offer over 4500 sq ft of well configured office space.
Jim Remfry commented “We were delighted to acquire this iconic freehold for our well known client, Artorius Wealth, particularly considering the demand for the asset and highly competitive bidding process.”
31-32 High Street, Colchester - £4.25m NIY 4.64%
Acting on behalf of Custodian REIT plc in July 2016, CWM agreed a lease surrender with Arcadia and a fresh 25 year lease to Metro Bank, significantly increasing both the passing income and term.
This summer, the tenant approached CWM to see if they could purchase the freehold interest from Custodian REIT. We negotiated an off market sale, with Metro Bank paying a price reflecting £4,250,000 (4.64% NIY) on the existing bank income and a capital value of £200,000 for the vacant 2nd floor, which extended to 2,592 sq ft and included planning consent for 4 apartments.
Ben Simpson at CWM commented; "using our extensive knowledge of occupier requirements, CWM were able to add significant value to our client's holding in Colchester. Firstly by agreeing a reversionary new lease to Metro Bank and then by selling the property in an off market context to the now owner occupier."
8-16 Nun Street, Newcastle upon Tyne - £7.25m 6.79% NIY
Acting on behalf of private Irish investors, CWM marketed and sold this property to Columbia Threadneedle.
The property comprises a 50,000 sq ft former department store in a good secondary location in Newcastle upon Tyne city centre. The property’s façade onto Nun Street is listed, behind which is substantially redeveloped, modern retail accommodation. At the time of sale the property was let to Wilko with 9 years unexpired, subject to no further review at a ‘rebased’ rent of £525,000 per annum (£10.63psf GIA).
CWM measured and inspected the property and prepared marketing particulars during the months of July and August 2017. The property was marketed for sale at a price of £6,500,000 reflecting 7.57% NIY and 8 written bids were received. A formal best bids process was conducted with the property being placed under offer to Columbia Threadneedle who exchanged and completed within around 10 days.
The property was sold £725,000 ahead of asking and the price of £7,250,000 reflected 6.79% NIY. John Miles commented “To have picked this property up, prepared it for sale, marketed it and sold it within what are traditionally known as the quiet summer months was particularly satisfying.”
For further information, please contact John Miles
25-29 Queens Square, Crawley - £4.25m 7.29% NIY
Acting on behalf of David Samuel Properties, CWM sold this prominent corner retail unit in Crawley.
The property is let in its entirety to Deichmann-Shoes UK Ltd (assigned from New Look Retailers Ltd) on a 20 year FR&I lease from March 1999, (1.50 years unexpired) at a current passing rental of £330,000 pax.
The freehold interest was sold for £4,250,000, reflecting a Net Initial Yield of 7.29% and an Equivalent Yield of 5.57%.
Ben Simpson commented “after first buying the property for David Samuel Properties back in October 2015 for £3,045,000 (10.24% NIY), CWM identified a special purchaser off market and was able to sell the freehold 20 months later at a significant profit.”
55/57b Clarence Street and & 4 Fife Road, Kingston - £18.1m 4.42% NIY
Acting on behalf of clients of DTZ Investors, CWM Retail Property Advisors has acquired a prime retail parade on Clarence Street Kingston for £18.1 million, representing a Net Initial Yield of 4.42%. The property, purchased from Aberdeen Asset Management, comprises 4 retail units primarily let to national multiple retailers on effectively FRI leases. The tenants are: Three, Oasis, Virgin Media and the luxury chocolate retailer Montezuma’s.
As well as comprising a prime retail parade, the investment also offers various asset management opportunities to improve performance, such as entering into early lease re-gear discussions with the retailers. The roof level is also underutilised and may offer the opportunity to increase the retail footplate or potentially for conversion into residential units.
Kingston is a major Regional Retailing Centre and proved extremely resilient in the economic downturn following the ‘credit crunch’. The prime Zone A tone is now approaching the pre recessionary peak, assisted by a limited supply in prime pitch and strong occupational demand.
Andrew McDonald at CWM commented: “This is an excellent deal for DTZ Investors. There have been several single let investments change hands in Kingston over the last few years, some at sub 4% Net Initial Yield, however prime retail parade transactions of this nature in Kingston are few and far between. To pick it up at a Yield of 4.42% is an exceptional result. With increased investment in the town including the forthcoming regeneration of the Eden Walk Centre, the prospects for an increased depth of occupational interest and further rental growth are strong.”
30 High Street, Witney - £1.22m 5.42% NIY
Acting on behalf of private clients, CWM disposed of this prime, freehold interest in Witney.
At the time of sale, the subject property benefitted from a new 10 year lease to Mint Velvet and also presented a potentially interesting development angle, with a near derelict residential dwelling also lying within the freehold title for sale.
After a sealed bids process, the resultant price achieved was £1,220,000, reflecting a yield of 5.42%
Dan Keatings commented “This property attracted a wide range of curious parties, beyond the usual level of interest we generally field for this kind of commercial unit. Most were transfixed on appraising the slightly opaque development opportunity at the rear, aware of a lapsed, historic planning consent to convert the derelict house into flats. Our client’s main priority was the speed of transaction and we completed the entire marketing process in under 2 weeks, ultimately achieving a highly satisfactory result for all parties”.
For further information please contact Dan Keatings.
Tavern Street, Ipswich - £4.719m, 6.85%
Acting on behalf of Columbia Threadneedle, CWM acquired this prime high street retail parade in the heart of Ipswich’s retail core. The vendor was M&G Investments and the off-market transaction was concluded after lengthy discussions straddling the June 23rd ‘Brexit’ Referendum.
The parade comprises 6 high street shops with ancillary upper parts, producing a total income of £344,500 p.a primarily from national multiple occupiers. This holding also forms an integral part of a property ‘jigsaw’, with the same client already owning high street retail assets on either side of this parade.
The freehold was purchased for £4,719,000, reflecting a net initial yield of 6.85%.
Andrew McDonald commented: “Investor sentiment in Ipswich has increased notably with the refocussing of the long-proposed Mint Quarter development. The retail landscape of the city is now looking more settled and occupational demand tangible. By concluding this transaction, the client has ‘linked’ together existing retail holdings and created a substantial, contiguous, retail parade. This is astute Fund Management, as sizeable multi-let high street parades of this nature are relatively rare and tend to command premium prices. It was the first purchase by this particular fund within Columbia Threadneedle since the Brexit Referendum vote.”
For further information please contact Andrew McDonald or Jamie Whitelaw.
Pride Hill & High Street, Shrewsbury - £10.3m 6.07% NIY
Acting on behalf of Custodian REIT plc, CWM advised on the investment purchase of this prime parade of 8 shops.
The property comprises an attractive block located in the busiest section of Shrewsbury’s prime pitch, at the corner of High Street and Pride Hill. Much of the property had been completely redeveloped behind the period facades in 1992 and as such it provides well configured accommodation in the best location in this historic town. Tenants include Edinburgh Woollen Mill, Ask, Paperchase, Greggs, Holland & Barrett, Whittard and William Hill.
Julian Norbury commented: “This purchase at £10.3m reflected 6.07% net initial yield. Much of the property was rack rented (with rents in Shrewsbury having fallen from £135 ITZA to around £105). These rents are very affordable and with a long lease to Ask, this rack rented parade should perform well in the future. The corner location and vacant upper parts may also provide the opportunity to create an attractive flagship store in the longer term.”
For further information please contact Julian Norbury
High Street, Chelmsford - £3.575m 5% NIY
Acting on behalf of a private British client, CWM acquired this prime high street unit in Chelmsford, from Colliers Capital.
The unit is let to Paperchase Products Ltd on a 15 year lease from 2nd November 2009.
The freehold interest was purchased for £3,575,000, reflecting a net initial yield of 5%.
Jamie Whitelaw commented: “Chelmsford has recently seen the new arrival of a John Lewis and the accompanying retail and leisure which is due to increase the yearly spend within the city by £690m annually. This off-market opportunity offered our client strong income with 8 years unexpired to Paperchase and also the potential rental growth from an ever expanding city in an excellent south east location.”
For further information please contact Jamie Whitelaw.
Sainsburys, Earlsfield - £7.4m 4.41% NIY
Acting on behalf of London Borough of Wandsworth Council, CWM acquired this prime food store in the affluent Greater London Suburb of Earlsfield, from M&G Investments.
The unit is let to Sainsburys Supermarkets Ltd on a 15 year lease from 27 July 2009 with RPI uplifts collar and capped at 2%-5%.
The long leasehold interest was purchased for £7,400,000 reflected a net initial yield of 4.41%.
Jim Remfry commented: “The London Borough of Wandsworth were looking to add some core income to their portfolio, and this well let food store investment, located in their borough was the perfect fit”.
For further information please contact Jim Remfry.
The Precinct, Coventry - £31.1m 7.94% NIY
Acting on behalf of Aviva Investors, CWM marketed this complex long leasehold mixed city centre estate, selling it after a competitive bids process to The European Opportunistic Property Fund III, advised by the European Global Real Assets Group of JP Morgan Asset Management.
The property comprises a long leasehold estate of 33 shops in Coventry city centre. It totals approximately 81,500 sq ft and is held long leasehold from Coventry City Council with around 122 years unexpired (including a right to renew) at a side by side gearing of 8.50%.
Given the complexity of the asset, CWM presented it via a bespoke online data site containing extensive due diligence and appraisal material. The property was brought to the market in the immediate aftermath of the European Referendum and was seen as a bellwether for how the investment market was going to react to the unexpected outcome of the vote for Brexit. After an intensive marketing process, bids were invited in mid August. Five first round bids were received indicating a very encouraging £150m+ of pent up demand for this type of asset.
The property was sold via a simultaneous exchange and completion of contracts in October 2016 for £31,100,000 which reflected a net initial yield of 7.94%, an equivalent yield of 7.76% and a reversionary yield of 8.21%.
John Miles commented: “This was a fantastic result in the immediate aftermath of the Brexit vote. It demonstrated an impressive volume of demand for well-presented retail investments in what was a challenging period of economic uncertainty”.For further information please contact John Miles or Julian Norbury.
North End, Croydon - £6.05m 4.65% NIY
Acting on behalf of Avignon Capital, CWM acquired this portfolio of reversionary prime mixed use properties from M&G Investments after a competitive bids process.
The portfolio comprises 3 single let high street shops with residential flats above, producing a total gross income of £278,120 p.a.
The freehold of all 3 properties was purchased for £6,050,000 which assuming a total capital value of £1,675,000 on the residential, reflected a blended a net initial yield on the commercial income of 4.65% and an overall blended yield of 4.31%.
Ben Simpson commented: “With the ongoing displacement of tenants from the Whitgift and Centrale shopping centres due their imminent redevelopment, demand from retailers looking to maintain their representation in Croydon has dramatically increased. Requirements for new shops on North End is currently far outweighing the supply, with Zone A rents in turn rising dramatically. All 3 shops acquired have upcoming rent reviews upcoming over the next 2 years with excellent reversionary prospects. With a 15 minute direct rail service to Central London and exciting £1.4bn plans to regenerate the town centre’s retail core, the client who is actually already a home owner in Croydon believes residential prices are well positioned to increase even further”.For further information please contact Ben Simpson.
Western Road, Brighton - £4.85m 5.71% NIY
Acting on behalf of Aberdeen Asset Management, CWM has disposed of this substantial freehold unit, situated in a prime location on Western Road, Brighton for £4,850,000.
The premises are let on one lease to Poundland for a further 9 years at a rent of £295,000 pa. The unit benefits from a prominent return frontage along Church Street with a secondary entrance into the upper and lower levels. With much of the upper parts under- utilised by Poundland, the unit seems to present significant asset management potential through taking control of these levels and converting to other uses, subject to planning.
Despite challenges presented by the Brexit result, the sale to a local investor concluded ahead of the guide price of £4,815,000 / 5.75% NIY after a best bids process.
Andrew McDonald of CWM commented: “Freehold property such as this with asset management potential are keenly fought after and top-tier towns such Brighton always command a loyal following. Using our extensive contact network, we were able to secure a local purchaser who performed very well through the deal”
For further information, please do contract Andrew McDonald or Jamie Whitelaw
Gulf Petrol Filling Station, Aberdeen - £1.25m 6.44% NIY
Acting on behalf of our clients of Whiteknight Properties, CWM advised on the successful disposal of this petrol filling station investment let to Certas Energy.
The subject property, located in the Aberdeen suburb of Dyce, is adjacent to Aberdeen Airport and comprises a petrol filling station (PFS) on a circa 0.66 acre site. Situated on Argyll Road at its junction with Dyce Drive, the site benefits from significant through traffic to the main terminal and parking of Aberdeen Airport to the north via Argyll Road.
It was held long leasehold (164 years at a peppercorn). Certas Energy, trading as Gulf, have taken a new 20 year lease at £85,000 per annum. The purchase price of £1.25m equated to a net initial yield of 6.44%.
Jamie Whitelaw commented: “The sale of this property showcases CWM’s versatility in advising across a broad spectrum of retail real estate investment subsectors.”
For further information please contact Jamie Whitelaw or our joint sole agent Ken Shaw at Ryden (01224 569664).
The Courtyard, Cheltenham - £4.65m 6.10% NIY
Acting on behalf of Avignon Capital, CWM advised on the investment purchase of this boutique retail and leisure courtyard in the fashionable Montpellier district of Cheltenham.
Located in a prominent position at the northern end of Montpellier Street, this mid 1980’s freehold development comprises a modern purpose built scheme with shopping on two levels, covered walkways and a sunken piazza.
The 12,086 sq ft courtyard is let to 16 tenants – mainly a variety of high-end independent retailers and local restauranteurs. At the time of purchase, the scheme was fully let at a contracted income of £302,501pa with no voids or irrecoverable costs. The property benefitted from a WAULT to tenant break of 3.90 years and 5.40 years to expiry.
Ben Simpson commented: “This purchase at £4.65m reflected 6.10% net initial yield. The client, who already owns elsewhere in the town, was looking to increase their holdings in the area. With several unsatisfied A3/A4 requirements for Cheltenham and the Montpellier area in particular, the client is eager to draw on the desirability of the town to create a high-end retail and leisure destination. With John Lewis set to open its doors in the former Beechwood Shopping Centre in 2017, the ongoing extension to the Brewery Leisure Scheme and a vast pedestrianised program proposed for the town centre - retailing in Cheltenham is set to benefit enormously”.
For further information please contact Ben Simpson or Jamie Whitelaw
Reiss, London - £18.75m 3.32% NIY
Reiss’s Kings Road flagship at is arguably the most prominent shop on the prime part of this iconic street, occupying a south facing corner position at the junction of Tryon Street, some 75 yards west of Sloane Square. Its frontage projects forward from the surrounding building line, giving it its unique prominence. Brands situated nearby include Joseph, Brandy Melville, Calzedonia, Russell & Bromley, Calvin Klein, & Other Stories, L’Occitane, Hobbs and Petit Bateau.
The property comprises a fine four storey double fronted Georgian building with classical proportions. The commercial element extends to some 7,100 sq ft and is arranged as a ground and basement retail store with a physiotherapy clinic on three floors above. In addition, there are two residential flats at second and third floor which were sold off on long leases.
Reiss (Retail) Limited held the premises on a 20 year FRI lease expiring 21st May 2018 at a passing rent of £665,000 per annum.
CWM were tasked to effect a swift sale of the property and produced marketing particulars and agreed terms for the sale within two weeks of receiving instructions.
The property was sold for a price of £18,750,000 which reflected 3.32% NIY.
For further information please contact John Miles or Julian Norbury.
Fargate, Sheffield - £3.26m 6.66% NIY
We were instructed by Standard Life Investments to sell this prime retail unit let to Next on Fargate, Sheffield. The property is arguably the most prominent shop on Fargate, situated on its east side on the corner with Norfolk Row. This location is 100% prime and other retailers situated nearby include Marks & Spencer, Vision Express, Topshop, WH Smith and H&M.
The property comprises a 3 storey corner unit with the benefit of a long return frontage onto Norfolk Row. The tenants trade from the basement, ground and first floors and there is additional storage at second floor level. The net internal area totalled some 6,800 sq ft.
The property was let in its entirety to Next Group plc on a 5 year lease at a rent of £222,500 per annum. The term certain at the time of sale was short; the lease having only approximately 2 years unexpired. The rent was ‘rack’, reflecting approximately £164 psf ITZA.
CWM marketed the property and went under offer with a purchaser before the June 2016 European Referendum. ‘Post Brexit’ negotiations ensued and the sale was kept on track, eventually completing at a price of £3,260,000. The sale reflected a competitive net initial yield of 6.66% NIY and a 6.36% nominal equivalent yield. John Miles of CWM commented: “This was one of the first high street retail investment sales to complete after the Referendum and it reassured the market that there was indeed ‘life after Brexit’”.
For further information please contact John Miles.
Park View Shopping Centre, Whitley Bay - £7.5m 10.08% NIY
Acting on behalf of Cordatus Real Estate (Jersey) GP Limited as General Partner of the Cordatus Property LP, CWM acquired this shopping centre investment in the popular north east seaside town of Whitley Bay.
The property comprises a modern, covered shopping mall with decked car parking above. It was constructed in 2004 and dominates the town’s shopping provision. It totals some 45,000 sq ft arranged as 16 retail units. The income was approximately 85% multiple and car parking with tenants including Sainsburys, Iceland, Boots, Costa, Thorntons and Superdrug. The tenancies had a weighted average unexpired term of approximately 3.00 years at the time of purchase.
The negotiations for the property spanned the surprise result of the Referendum vote in June 2016. This, together with the discovery during the due diligence process of some defects to the roof deck, enabled the price to be renegotiated and the property was eventually secured for £7,500,000 from the administrators, reflecting a very attractive net initial yield of 10.08%, a nominal equivalent yield of 9.95% and a reversionary yield of 10.16%.
John Miles commented: “To have secured a modern property let to this quality of tenant mix for a double digit yield was a great result for our clients. The centre dominates the town’s shopping and functions well as a convenience shopping destination for the local population”.
For further information please contact John Miles or Ben Simpson.
Old Bond Street & Trim Street, Bath - £6.75m 5.10% NIY
Acting on behalf of Aberdeen Asset Management, CWM surrender leasehold interest of this prime city centre shop back to the Freeholders.
The investment, which sits in prime position in central Bath, was held on a 91 year leasehold basis and subject to a 10% pay-away. The unit is occupied by Russell & Bromley on a short occupational lease to expire in May 2018, being under 2 years from date of marketing commencement.
Russell & Bromley occupied the premises on an over-riding basis, with sublet income attributable towards the office located at 6/7 Trim Street. There is a further office on Old Bond Street, again under the lease of Russell & Bromley, but unoccupied.
The rent reserved to Russell & Bromley was £410,000 pa (£369,000 pa after pay-away) and, after competitive bidding, the leasehold was surrendered for a consideration of £6,750,000 (ex VAT) reflecting a Net Initial Yield of just over 5.10%.
Andrew McDonald commented: “This was a pleasing result in the immediate aftermath of the Brexit result. It demonstrates the resilience of prime high street retail, including assets that present inherent challenges”
For further information please contract Andrew McDonald or Jamie Whitelaw
High Street, Southampton - £5.2m 9.00% NIY
CWM has disposed of this substantial long leasehold investment, situated in an edge of pitch location on High Street, Southampton.
The premises, comprising a former department store, are multi let under a variety of leases, with primarily multiple income including Tesco and Argos. The majority of income is attributable toward A1 retail use, however Southampton Solent University are liable for 15% of the income with ‘The Gym’ are further 20%. To the rear of the premises, on Castle Way, a secondary entrance is located leading up to the University accommodation and a further 19,000 sq ft of vacant space over third and fourth floor. As part of the marketing initiatives, CWM located a hotel operator who expressed interest in the space therefore offering potential valuable ‘upside’ to the purchaser.
Andrew McDonald of CWM commented: “This leasehold property is a classic risk and reward investment, offering the bold entrepreneur plenty of opportunity to add value through an aggressive hands on approach. The retail pitch in Southampton consolidated post opening of West Quay and, while now improving, this section of High Street has faced its challenges. We were pleased therefore to dispose of this property via a best bids situation which revealed a variety of entrepreneurial investors.”
The sale concluded close to the guide price of £5,200,000 / 9.00% NIY.
For further information, please contract Andrew McDonald
Reindeer Court, Worcester - £4.2m 9.96% NIY
Acting on behalf of a private family trust, CWM advised on the investment purchase of this attractive speciality arcade.
The investment, which sits in a busy secondary location in central Worcester is held Freehold and comprises a part listed Arcade of 40,400sqft in 31 shop units. The arcade provides an attractive link between the rear of Marks & Spencer on The Shambles going through to Mealcheapen Street and the new Asda development the otherside of City Walls Road.
Julian Norbury commented: “This purchase (in my home town!) at £4.2m reflected 9.96% net initial yield. The client was looking to maximise their income return and the granular nature of this income combined with a modest level of post purchase debt should, with the right management input, provide our client with both a steady income and high returns.”
For further information please contact Julian Norbury
Sloane Avenue, Chelsea - £3m 3.84% NIY
Acting on behalf of clients of Dorrington plc, CWM advised on the successful investment purchase of this shop let to Douglas & Gordon.
The investment sits in an attractive Chelsea side street, off the Kings Road. The property formed part of a parade already in our client’s ownership. It was held virtual freehold (974 years at a peppercorn) over ground floor and basement let at £122,500. Douglas & Gordon’s owners were undertaking a sale and leaseback. The purchase price of £3m equated to a net initial yield of 3.84%.
Julian Norbury commented: “The client was delighted to add to their holding here in the heart of Chelsea. The property comprises a strong lifestyle and service pitch off modest rents.”
For further information please contact Julian Norbury
Monument Mall, Newcastle - £75m 4.29% NIY
CWM acquired this 100% prime city centre retail holding for Standard Life UK Property Fund.
The property is the result of the substantial redevelopment of the former Monument Mall shopping centre. It now comprises the most prominent single ownership retail block in Newcastle city centre outside of the Intu shopping centre. It sits on an island site at the junction of Blackett Street and Northumberland Street in the middle of the prime shopping loop created by the entrances to the Intu centre. It totals some 132,000 sq ft and is let to 14 shops and 2 restaurants.
On its eastern side, its Northumberland Street frontage is in the prime section of the street where retailers include Fenwick, H&M, WH Smith and Five Guys. On its southern side, its Blackett Street frontage has now become the focus of high quality aspirational retailing in Newcastle city centre. Tenants in the property include Reiss, Hugo Boss, White Company, Michael Kors, Kiehls, Molton Brown and Jack Wills.
The freehold of the property was purchased from Hammerson for £75,000,000 (Seventy Five Million Pounds), reflecting a net initial yield of 4.29%, a nominal equivalent yield of 4.68% and a reversionary yield of 4.77%. John Miles of CWM commented: “A high street block of this size and quality only comes along very rarely – perhaps once a year or less. For institutions looking for this scale of investment, the answer is most usually shopping centres and ones of this size are often secondary. Investments like this are very rare beasts.”
For further information please contact John Miles.
High Street, Winchester - £5.4m 4.7% NIY
BMO Real Estate Partners, advised by CWM, have purchased 106a & 106b High Street, Winchester in an off-market deal from a private investor for £5,400,000. The price reflected a net initial yield of 4.66%.
The two shops, located in 100% prime pitch, will be let to Mint Velvet for a further nine years and Specsavers for a further six. Both options will offer secure income against two well-regarded high street multiple retailers. The average weighted unexpired lease term (AWULT) on the property is 7.84 years. The passing rent of £266,000 per annum is reversionary and rents continue to grow in Winchester amongst low vacancy rates and strong occupational demand.
The purchase price of £5.4 million reflects an attractive Net Initial Yield of 4.7% with a Reversion to 4.9%.
For further information, please contact Andrew McDonald or Jamie Whitelaw