Category "Uncategorized"

One Final Unit Remaining, 34 Warrington Street

by Cheetham and Mortimer

Thrilled to have disposed of a former café at 21 Bow Street, Ashton_u_Lyne on behalf of our client Riddell TPS. A newco has taken the property on a 5 year lease at £18,500 pa. One final unit remaining, 34 Warrington Street. For any further information contact Warwick Smither.

5Mar
by Cheetham and Mortimer

Cheetham & Mortimer are delighted to be instructed by Core Consult to dispose of the final four remaining former M Local convenience stores in Blackburn, Blackpool (x2) and @Lancaster. Should you have any further queries please contact Warwick.

18Feb
by Cheetham and Mortimer

The new Amazon Management Services at Number One Princes Dock is looking great. If you are interested in the adjacent unit in a highly prominent location within the heart of Peel’s Liverpool Waters Development please contact Conor.

10Nov

Not All Retail Investments Deserve To Be On The Naughty Bench

by Cheetham and Mortimer
1 comments

Despite the tumultuous change sweeping through the retail sector, we had a busy end to the Q3 trading period suggesting that not all investors are running scared. However, in every instance there is a recurring theme – a desire for low risk/high quality investments attained through either undoubted tenant financial strength, long lease or sustainable location.

Perhaps unsurprisingly, the defensive nature of the grocery sector still holds attraction. We quietly sold a ground lease investment in Rochdale let to Tesco for an unexpired term of 80 years at a sub 4% yield. Whilst the potential for future rental growth might be less deserving of a low yield the longevity of the income is undeniable. Conversely, it was the growth potential associated with fixed rental increases that enabled us to sell the Aldi in Sale for a price showing a yield of 4.5% for 16 years term certain.

We were very pleased to complete the purchase of 35 Petty Cury, Cambridge for the Ludgate Estates. This prime High Street shop is leased to the “internet resilient” company of Timpsons for another 8 years, thus offering the prospect of stable income. However, it is the impressive dynamic of the local economy, founded on the global reputation of the University, that convinced our client that Cambridge has a long term sustainable position in the national retail hierarchy.

Finally, the growth of the leisure sector and the transition to convenience is driving the expansion of the drive thru coffee shops. With the backing of Coca Cola, it is widely expected that Costa is on the road to becoming a global brand. With the added benefit of 15 years term certain and guaranteed growth linked to the Retail Price Index, The District Estates were delighted to acquire Costa’s new Drive Thru at Crewe Business Park for a price showing a yield of 5%. The nature of the strategic location, adjacent to a main arterial road and a new business park, should ensure a successful trading operation.

As always, it is about stock selection to guarantee a sustainable investment. Critically, understanding the function of a property in any given location is more important than ever when attempting to determine the good from the bad.

Acting on a joint agency basis with Hynes Illingworth, Cheetham & Mortimer have agreed a 10 year lease with Grindsmith for the property, which extends to approximately 1,250 sq ft at ground floor, with a further 450 sq ft of ancillary lower ground floor space.

Rob Millington

Investment

2Nov

New Letting At Bridge Street Manchester

by Cheetham and Mortimer
1 comments

Acting on a joint agency basis with Hynes Illingworth, Cheetham & Mortimer have agreed a 10 year lease with Grindsmith for the property, which extends to approximately 1,250 sq ft at ground floor, with a further 450 sq ft of ancillary lower ground floor space.

Josh Moores, surveyor at Cheetham & Mortimer, commented “the ground floor retail space actually forms the entrance to the upper floor office scheme, so there was only a handful of quality operators who could make this space work. Grindsmith were always our first choice and we look forward to seeing them flourish”.

22Oct

Costcutter Portfolio Sold Within 2 Weeks

by Cheetham and Mortimer

Acting on instructions from Costcutter Supermarkets Group Limited, Cheetham & Mortimer have successfully arranged the sale and leaseback of a portfolio of village ‘C’ stores situated in the North East of England to Pride View Properties Limited.

By planning in advance, the deal was able to be concluded within 9 working days from the agreement of terms.

Costcutter have been impacted by the failure of their suppliers, Procter & Harvey, but with a new agreement with the Co-Op due to take effect in the Spring, the company is now on a firmer footing.  Costcutter entered into 15 year leases with fixed rental increases every 5 years, based on 2% per annum compounded.  The deal reflects an initial return of 7.5%.

27Sep

New Letting at Princess Street, Manchester

by Cheetham and Mortimer

Acting on a joint agency basis with Hynes Illingworth, Cheetham and Mortimer have agreed a 10 year lease at 31 Princess Street to Artisan Café, Hamptons and Vouis for their second site within Greater Manchester.

Josh Moores, Surveyor at Cheetham and Mortimer commented ‘We had multiple national operator interest in this site but a client who was very much ‘offer driven’ and was focussed on providing a complementary use to the office space at the upper levels of the building. We believe Hamptons and Vouis provides the perfect balance.’

Amazon vs The High Street

by Cheetham and Mortimer

Recently, Amazon quite rightly received adverse publicity for their ridiculously low tax exposure following a threefold rise in profit. Morally, this might be unfair but legally, Amazon have done nothing wrong.

If you want to adopt the moral high ground and support the high street, cease shopping online at Amazon. However, in my opinion, the moral finger of blame should be firmly directed towards the government and their persistent bludgeoning of traditional business via Business Rates. Retail Week published a very sobering statistic this week – In the latest revaluation House of Fraser endured a 57% increase in the Rateable Value of their flagship store on Oxford Street delivering a rate burden from a single store that is greater than Amazon’s entire tax contribution. That’s just simply wrong. Until the government addresses such inequalities, traditional retailers will struggle to compete and the High Street will continue to decline.

Rob Millington

10Sep

Art and Sole Heads to Manchester

by Cheetham and Mortimer
1 comments

Advised by Cheetham & Mortimer, footwear boutique Art & Sole has taken a five-year lease on a 2,500 sq ft unit at 5 St Mary’s Gate, opposite Paperchase and next to Zara between Market Street and Deansgate.

The unit on St Mary’s Gate has been empty for some time but Art & Sole is set to open its first store on the site, stocking ultra-limited-edition footwear from the likes of Nike and Adidas.

The fashion boutique is understood to be paying rent of £90,000 per year on a five-year lease, with two years at half rent. Metis acted for the landlord, Millerbrook Property.

Josh Moores, surveyor at Cheetham & Mortimer, said: “The current state of the retail market has been well documented but we are keen to explore the opportunities that this creates for independent operators such as Art & Sole, who will occupy a prominent unit close to established national operators Paperchase, Zara, M&S and Selfridges.”

7Sep

Home Bargains and KFC sign up in Kirkby

by Cheetham and Mortimer

Home Bargains and KFC will join Morrisons as anchor tenants for St Modwen’s redevelopment of Kirkby town centre with the former taking a 20,000 sq ft unit.

Home Bargains will relocate from its existing store on St Chad’s Parade to act as the second retail anchor for the 110,000 sq ft redevelopment, which secured planning permission last year.

It joins Morrisons as one of the main retail tenants at the scheme after the supermarket signed for a 45,000 sq ft unit in September last year. The food store is expected to generate around 200 jobs.

KFC also becomes the redevelopment’s first food anchor taking a 3,500 sq ft unit.

The wider scheme includes shops, a petrol filling station, car parking, and public realm. St Modwen purchased the site from Tesco in 2015 for £35.8m and demolition of the existing derelict buildings, including the former Asda and Gala Bingo hall, is well under way.

Paul Batho, development director for St. Modwen, said: “We are really pleased to be able to announce these additions to the scheme which is testament to Kirkby’s strong draw and the quality of the scheme that has been designed.

“With Morrisons, Home Bargains and KFC on board we are looking to create an attractive mix of retail brands that complement each other and the current offering within the town centre.

The retained agents for the scheme are Colliers International and Cheetham & Mortimer.

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