Salmon Harvester Opportunity Fund has sold the freehold investment of a DW Sports unit at Victoria Retail Park Netherfield, Nottingham, to Nottingham City Council. The council purchased the 45,350 sq ft unit for £9.6m, at a net initial yield of 6.18%. Salmon bought the unit for £6.6m in 2013.
David Whelan Sports signed a 25 year lease in 2008 for the unit four miles north east of Nottingham city centre. The lease incorporates 5 yearly fixed reviews equivalent to 2.5% pa. The next review in 2018 will see the rent rise to £633,633 pa (£13.97 per sq ft overall).
The unit comprises a ground floor health and fitness centre, above which is a retail sales unit. It sits within a retail cluster that fronts the A612 dual carriageway alongside a range of other retailers including B&Q, Argos and Next. With a low site cover of around 25%, there are opportunities for future development or expansion.
Fund Manager Matthew Meaden said: “We were asking for offers in excess of £9m and are delighted with the price. Our fund is performing very strongly and this is the second sale this year which has produced returns in excess of 20% pa for our investors.”
Salmon Harvester was represented by HSM and Nottingham City Council was unrepresented.