Franck-Steier Price has recently concluded the freehold sale of a Tesco Express unit on Chester Road, Northwich on behalf of David Hardaker’s company H22 Ltd.
The building is prominently situated on Chester Road, one of the main arterial routes in and out of Northwich town centre to the south-west.
The property comprises a two storey building which has been comprehensively refurbished. There is a retail unit to the ground floor which extends to 371.61 sq.m (4,000 sq.ft). The first floor has been converted into two residential apartments which are accessed via a separate entrance.
The ground floor retail unit is let to Tesco Stores Limited on a full repairing and insuring lease for a term of 20 years from 7 November 2010. There is a tenant only break clause in the 10th year subject to 6 months notice. The current rent is £49,850 per annum. The lease incorporates 5 yearly rent reviews to compounded RPI with a collar and cap of 1% and 4% per annum respectively.
The residential apartments were sold off on completion of the investment sale on two 125 year long leaseholds at a ground rent of £75 per apartment.
The purchaser was a private investor, represented by Franc-Warwick, who paid a price of £815,000 reflecting a net initial yield of 5.8%, assuming purchaser’s costs of 5.80%.