We have just advised Savills IM on the successful purchase of Fleets Lane Retail Park in Poole. After two rounds of competitive bidding, we managed to secure a contract at a premium of 10% to the asking terms. We recognised from the outset that the desirable combination of long leases (WAULT – 12.4 years), stable tenants (Wrens Kitchens and Aldi), sustainable income (Av £17.25 per sqft) and desirable location (South of England) provided for a rare commodity that would undoubtedly generate broad interest….and it never failed to deliver on this promise. There is of course another aspect that contributed towards this outcome – it comprised retail warehousing.
This sector has emerged from the pandemic in good shape. It’s ability to adapt to the needs of convenience shopping and multi-channel retailing is apparent. In this case, the investment value is underpinned by the location and a high residual land value associated with alternative uses. Not all retail warehousing is the same and investors would be wise to remain circumspect. Nevertheless, the contrast with the High Street and Shopping Centre sectors has never been greater. Here the risks are multiple and complicated. Presently, values are deserving of a significant risk premium and we do not anticipate yields going sub 5% again any time soon….if at all.
Robert Millington. Partner. Investment. September 2021
Prime Retail Premises NOW LET in Douglas, Isle of Man
Despite the difficult high street market, on behalf of a private investor clients Cheetham & Mortimer have managed to secure a letting to Mountain Warehouse of this prime unit.
A prominent building occupying a 100% prime trading position on pedestrianised Strand Street.
The property comprises a modern purpose built retail unit designed to provide sales accommodation and staff facilities over ground, first and second floors.
Other retailers within the immediate vicinity include Marks and Spencer, Boots, Next, New Look, River Island, JD Sports, Monsoon and TK Maxx.