The recent sale of a major retail investment in the centre of Exeter indicates continued progress in the commercial property market reports property consultants Vickery Holman.
The property benefits from three tenants, Careers South West and The Co-operative Group on the ground floor and Westcountry Housing on the First and Lower Ground Floors.
Careers South West currently have a 15 year lease terminating in February 2017 and are paying a current rent of £36,000 per annum exclusive, whilst The Co-operative Group have a 25 year lease terminating in January 2027 paying £35,250 per annum exclusive.
The local private investor paid £875,000 which shows the purchaser a net initial return of 7.67% allowing for normal purchasers costs at 5.8%.
The first and lower ground floors are let to West Country Housing on a 125 year lease on a peppercorn rent.
Vickery Holman’s director Mike Oldrieve comments “The property provides quality income in what is a very popular city, and due to the length of The Co-operative Groups lease achieved a reasonable price given the current market. It shows that there is still a strong market for quality property.
For those currently active in the investment market, there are some great acquisitions to be made at the present time and I would be delighted to talk to owners of similar properties.”
