Clients of Knight Frank Investment Management have purchased from Travis Perkins plc two recently completed, retail warehouse developments at Otterspool Way, Watford and at Longfield Rd, Tunbridge Wells. The freehold investments were acquired for £20.55 million at an initial yield of 4.7%.
Both developments are in prime trading locations and opened for trade in 2016. The Wickes units were constructed in the latest trading format of c 20,000 sq ft ground floor sales and 5,000 sq ft showroom mezzanines. A second retail unit of 6,000 sq ft at Tunbridge Wells is let to Tapi Carpets and a 5,000 sq ft B2/B8 unit at Watford is let to Spire Automotive.
Wickes have taken a lease for 20 years, without break, at an initial rental of £18.55 psf at Watford and £18.20 psf at Tunbridge Wells. Whilst reflecting the ‘bulky goods’ consent, the initial rental levels represent a significant discount to the levels achieved for Open A1 use in either location.
Darren Screen , Property Finance Director for Travis Perkins said, “This latest sale of two of our recent developments, both anchored by one of our key subsidiaries, continues to be in line with our stated Group objective of recycling capital back into the business“.
HSM and Herbert Smith Freehills advised Travis Perkins plc on the investment sale. KFIM were advised by Harvey Spack Field.