Acting on instructions from Clearbell Capital, in a joint agency capacity with Gerald Eve, we are delighted to have completed the sale of their long leasehold interest in the commercial element of The Radius – a modern mixed use retail/residential property situated in Prestwich – a popular suburb of Manchester. The investment is fully occupied by nine tenants and includes a complementary blend of convenience retail from such national operators as Superdrug, Costa and Greggs together with some independent operators from the food and beverage sector including Croma and Panama Hatty. Having received five offers, the investment was sold to a locally based Property Company – David Samuel Properties – for a price in excess of £3,600,000 to show an equivalent yield of approximately 8.9%.
We are delighted to inform you that as from Thursday 24th February 2022, Cheetham & Mortimer’s new office address will be:
Unit 7, 3 Denmark Street, Altrincham, Cheshire WA14 2SS.
Our telephone number remains the same: 0161 832 3375
We overlook the lovely Goose Green.
More photos to follow.
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