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Investment News
Acting on behalf of a private family property trust, FHP are pleased to announce completion of the sale of the above retail / residential development opportunity in the centre of Nottingham.
This property comprises a period building of two substantial shops occupying basement, ground and three upper floors, located in an undoubted retail location at the junction of St Peters Gate and Bridlesmith Gate. The shops are occupied by The Body Shop and Molton and Brown. The three upper floors are approached via a separate access off Poultry Arcade, totaling approximately 3,900ft² The Body Shop had recently renewed their lease for 5 years. Molton Brown who occupy the corner shop with a return frontage to St Peters Gate has a which lease expires in April 2020.
The property currently produces an income of £205,000 but, with the fall in rents, the ERV was considered to be £160,000 per annum so consequently when the lease to Molton Brown expires in April 2020 the rent will consequently fall.
Plans has been drawn up showing how this property can be converted to provide 13 studio apartments which will let at rents between £100 – £125 per week, per person.
The purchasers were represented by heb Chartered Surveyors and Polestar Asset Management. Jon Emmerson of HEB commented:-
“heb and Polestar were delighted to acquire this prominent city centre building on behalf of our client. We believe that there is a significant asset management angle to increase the rental income and capital value”
The quoting sale price was £2,350,000 and a deal was agreed close to that figure. The purchase price showed an initial yield of 8.78% dropping to 6.86% with the potential of the upper floors.
Noel Roper and David Hargreaves acted on behalf of the vendors but it was particularly pleasing to be instructed as Noel introduced this property to the vendors over 20 years ago and he was therefore delighted to be instructed in the sale.
For more information please contact Noel Roper of FHP Property Consultants on 0115 950 7577.
Noel Roper
Date: 19th December 2019