Addington Capital, the property investment and asset management specialist has sold Drake House, Derry’s Cross, Plymouth PL1 to a private investor for the asking price of £4.65 million. The price reflects a net initial yield of 9.36% and a capital rate of £137 psf.
Drake House is a 33,887 sq. ft prime leisure investment located within Plymouth city centre and is fully income producing to strong covenants, with tenants including national and well-regarded brands such as Grosvenor Casinos, Walkabout and Marston’s who provide a passing rent of £463,905 pa.
The building is a modern build, constructed in 2002 and located on the prime leisure circuit in Plymouth. Neighbouring occupiers include Travelodge, Revolution, Wildwood, Bella Italia, Wetherspoons and Theatre Royal. It is in the heart of the city and its surrounding area is undergoing a major transformation with many commercial, student and residential developments under construction or recently completed.
The building also has Immediate access to significant local car parking, including a 71-space car park to the rear of the property and the 612 space Theatre Royal multi-storey car park behind Derry’s Cross.
Matthew Allen, Principal of Addington Capital said, “We have actively asset managed Drake House since we acquired it in joint venture in February 2016, and we are now at the end of the planned investment cycle. We’ve attracted some well-known household names as tenants and are delighted to receive the full asking price for this property.”
Plymouth is the second largest city in the Southwest and is widely renowned for its maritime history and its association with being an international seaport. It has a population of 259,200 (ONS 2013), making it the 15th largest city by population in the UK. Plymouth’s dominance within the southwest has resulted in very little competition from surrounding retail centres and the city has seen a number of new retailers opening stores, including Jack Wills, Joules and White Stuff.
Allsop and C&W advised jointly for the vendor.