8 / 10 LOW PAVEMENT

Investment News

FHP acting on behalf of a private investor are pleased to announce completion of the sale of the above retail/leisure investment property after competitive bidding by informal tender.

The property comprises the former offices of Hallam Bracket subsequently acquired by Connell Wilson and Lambert Smith Hampton in 1987. The property was let on assignment to Prezzo Plc for the residue of a 25 year FRI lease from August 1998 at a rent of £75,500 per annum, thus having 12 years unexpired with the potential increase to the rent of £13,000.

The current rent payable equates to a ground floor rate of £25 psf. The rental values in the Low Pavement area have considerably increased in recent years due to the presence of Carluccio’s and Jamie’s Italian further along Low Pavement/Middle Pavement.

The estimated rental value is something in the region of £85,000 to £87,500 per annum.

The property was offered to a selected number of parties. A price of £1,175,000 was eventually agreed to show an initial yield of 6% and a reversionary yield of 7% after costs.

The purchasers, who are a northern based private property company, were represented by John Steadman of Steadman Brierley of Leeds.

Noel Roper of FHP comments:-

“Having been a Partner with Hallam Bracket many years ago I was delighted to be instructed to re-sell the former Hallam Bracket premises where I worked for many years.

Rental and capital values have considerably increased in this area and thus we were able to achieve a very satisfactory price on behalf of a private vendor who had owned this property for a considerable number of years.