CBRE has completed the £28.1 million sale of a prime Oxford Street retail property, currently the home of Boots, on behalf of F&C REIT to a private foreign investor.
The 7,858 square foot property at 385-389 Oxford Street is entirely let to Boots UK on a lease expiring in June 2019. The building is situated next to Bond Street station and West One Shopping Centre. CBRE achieved £4.2m over the asking price, representing a net initial yield of 3.62%.
Phil Cann, Executive Director, Retail Capital Markets, CBRE commented:
“We were able to achieve this premium bid by carrying out a joined up asset management plan prior to sale, involving both our specialist leasing and professional expertise. By completing a lease re-gear and a rent review to £700 Zone A prior to sale, we eliminated perceived investor risk. High level and multiple bidding for this asset demonstrates the value placed on low risk purchases by overseas investors.”
The deal brings the total amount of Oxford Street retail assets sold by CBRE in 2012 to £240m. Over the past two years CBRE has held an 80% market share of the Oxford Street investment market, having transacted £700m since November 2010.
CBRE has also been involved with 21 Agency deals on Oxford Street so far in 2012, totaling 160,000 sq ft. The company has a 40% market share of all rent reviews and lease renewals on Oxford Street from 2010 to date.
F&C REIT currently has a global portfolio with a value of £7.2 billion, with £5bn worth of commercial property assets spread through the UK alone.
