Investment Sale for New Private Client
16th January 2013
Acting on behalf of a retained client, NG Chartered Surveyors have sold a retail investment in Leicester. The property, let to the fashion retailer, Fat Face, until June 2018 at a passing rental of £62,000 per annum, was sold to a private investor for an 8% initial yield.
The sale is part of a considered re-structuring of the client’s investment portfolio, which can be explained further by Partner, Jonathon Seddon. He said “I was conscious that whilst the subject property is well let to a very solid company, its best days were probably behind it. As a City, Leicester has changed enormously following the opening of the Highcross Centre, which has had the effect of ‘pulling’ the town centre away from the subject premises. There was no scope for any rental growth at the next rent review and there was a very real risk of the tenant company relocating at least expiry.”
The property was marketed by NG Chartered Surveyors in conjunction with Allsops Auctioneers, but the sale was concluded prior to the auction, as further explained by Mr Seddon. “We wanted to maximise the exposure of the property to the market by using an acknowledge leader in commercial property auctions and this belief was well proven, given the good levels of interest generated and whilst it is always exciting to sell a property at auction, it was felt that the offer received was a good price.”
The capital from the sale will be used by NG Chartered Surveyors to secure further investments for the client.