Acquisition of Retail Investment - 309 High Street, Lincoln

On behalf of private investors, Cooper Rose Real Estate has acquired the freehold interest in a prime retail investment in Lincoln city centre for a price of £1,300,000, reflecting a net initial yield of 5.5%.

The subject property sits within a 100% prime location on the pedestrianised High Street just south of the River Witham and opposite St Benedicts Square. There are currently very few vacant shops along this part of the High Street with nearby multiple retailers including; Paperchase, Ernest Jones, Fat Face, Boots and Pandora.

The entire property is let to Next Holdings Limited on a 99 year full repairing and insuring lease from 6th March 1970 (approximately 50.5 years unexpired) at a current rent of £77,000 per annum. The lease benefits from 10 year rent reviews with the next due on 6th March 2020.

EE Limited currently occupy the premises on a 5 year underlease from 31st July 2017 (approximately 4 years unexpired) at a current rent of £104,300 per annum. The underlease is on the same terms as the original lease and has the benefit of a rent review due on 6th March 2020.

HRH Retail acted for the vendor.

Contact Giles Cooper

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Sale of Jurys Inn, Nottingham

On behalf of private investors, Cooper Rose Real Estate has sold the long leasehold interest in the Jurys Inn hotel on Station Road in Nottingham, East Midlands.

The property comprises a modern 264 Bedroom hotel opened in October 2005. All rooms are en-suite with air conditioning and free Wi-Fi. Additional facilities include a Costa coffee and hotel restaurant and bar. The hotel has recently been refurbished at a cost of £2.2m.

The property is situated close to Nottingham rail station and tramway and within walking distance of the city centre.

The investment is secured to to Jurys Hotel Management (UK) Limited with a guarantee from Jurys Inn Group Ltd on a 35 year lease from 16 October 2005, expiring 15 October 2040

The current passing rent is £1,749,738.57 per annum, which is subject to uncapped RPI compounded uplifts every 5 years, with the next review on 16 October 2020.

The details of the transaction are confidential.

Contact Ben Rose or Giles Cooper

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Investment Sale: Units 1 & 6, Wilson Road, Huyton Business Park, Merseyside

On behalf of private clients, Cooper Rose Real Estate has sold the freehold interest in two adjacent industrial units in Huyton, Merseyside for a price of £3,500,000, reflecting a net initial yield of 7.59%.

The property is situated on the established Huyton Business Park, adjacent to the intersection of the M62 and M57 Motorways, and comprises two detached, well specified industrial units on a large site extending to 6.47 acres.

Unit 1 comprises 92,117 sq ft whilst Unit 6 provides 31,272 sq ft of accommodation (123,389 sq ft in total).

Unit 1 is secured to the undoubted covenant of City and St James Property Holdings Limited (D&B Rating 5A1) with circa 3.5 years unexpired. Unit 6 is secured to the established covenant of Locker Freight Limited (D&B Rating A1) on a lease expiring in April 2019.

The total current income is £282,690 per annum, reflecting £2.48 psf on Unit 1 and £1.73 psf on Unit 6.

Contact Ben Rose or Mark Powell at our joint agents Christopher Dee.

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From Gloucestershire Live

Sainsbury’s superstore bought by Cheltenham Borough Council ‘to support the local economy’ - The authority buys site in Priors Road as it adds to its property portfolio

By Robin Jenkins Chief Cheltenham Reporter

Cheltenham Borough Council says it has bought Sainsbury’s in the town’s Priors Road “to support the local economy”.

The council said the completion took place yesterday and that the property in Oakley, Cheltenham would remain as a supermarket.

Councillor Rowena Hay (LD, Oakley), the authority’s cabinet member for finance, said: ‘’The purchase will contribute towards making the authority more financially sustainable at a time when government funding is diminishing to continue to invest in front line services and community development.

“Acquiring Sainsbury’s, together with the recent purchase of Ellenborough House, highlights the council’s commercial aspirations. Negotiations have taken almost a year and I am pleased that we are at the point of completion.

‘’This investment also demonstrates the commitment the council has in the strength of Cheltenham’s current and future economic prospects.’’

Paul Jones, the council’s executive director for finance and assets, said: “The taxpayers of Cheltenham can be assured that significant due diligence and negotiations went into this acquisition, which complements our already well balanced and diversified property investment portfolio.

‘’The net income from our property investment portfolio amounts to £1.6m per annum and is projected to rise to £1.8m by 2022/23. This source of income is critical to funding the valued services provided by the borough council to its residents and replaces the government funding that we once relied upon.”

The property comprises approximately 44,500 sq ft, 187 parking spaces and a six pump petrol station, on a four acre site.

The purpose built store, which opened in October 2006 on part of the old GCHQ Oakley site, is the only large-scale supermarket on the eastern side of Cheltenham.

Cooper Rose Real Estate acted for the vendor.

https://www.gloucestershirelive.co.uk/news/cheltenham-news/sainsburys-superstore-bought-cheltenham-borough-2136926

Food Store Investment Sale

On behalf of institutional clients, Cooper Rose Real Estate has sold the freehold in a prime food store let to Sainsbury’s for a price of around £20,000,000, reflecting a net initial yield of 5%.

The details of the transaction are confidential.

Contact Giles Cooper

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Investment Sale: Jack’s by Tesco Stores Limited, Kennedy Way, Immingham, North East Lincolnshire

Cooper Rose Real Estate has been instructed to market this modern, purpose built food store investment in Immingham, North-East Lincolnshire, the salient points of which are as follows:

  • Immingham is an historic shipping town located approximately 8 miles north west of Grimsby, 22 miles east of Scunthorpe and 28 miles south of Hull

  • The town benefits from good road communications and is serviced by the A180, linking the town with Grimsby to the south east and the M180 just 9 miles to the west

  • There are over 37,700 people living within 15 minutes of Immingham rising to over 236,000 people living within 30 minutes

  • The town is rapidly expanding with plans to build over 700 new homes

  • Immingham is also a thriving industrial town with trade centred on the Port of Grimsby and Port of Immingham, which is the UK’s largest Port

  • The subject property forms part of the town centre for Immingham which was recently subject to a £10 million redevelopment

  • 45,286 sq ft supermarket that has recently been re-fitted to trade as Jack’s – Tesco’s new discount trading fascia

  • Long leasehold for a term of 999 years from 30 November 1995 (976 years unexpired) from Cleethorpes Borough Council at a peppercorn rent

  • Let to Tesco Stores Limited, trading as Jack’s, for a further 20.9 years (10.9 years term certain) on a fully repairing and insuring lease

  • The passing rent is £679,290 p.a. (£15.00 per sq ft) and is reviewed five yearly on an upward only basis linked to the Retail Prices Index with a collar of 1.00% p.a. and cap of 4% p.a.

  • The next review being 5th September 2019 - vendor will top the rent up to £760,000 p.a.

  • Tesco Stores Limited have an undoubted covenant with a ‘5A1 / Minimum Risk’ credit rating from Dun & Bradstreet with a reported turnover of over £40bn in 2017

  • We are instructed to seek offers in excess of £10,960,000 subject to contract and exclusive of VAT, which reflects an attractive Net Initial Yield of 6.50% on the basis the rent is topped up and assuming purchaser’s costs of 6.70%

  • A purchase at this price produces an estimated running yield at next review (Sept 2024) of 7.50%

Contact Ben Rose, Sammy Whittaker or our joint agent Ben Turquet of Harvey Spack Field

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Melburg buys Bristol mixed-use opportunity - advised by Cooper Rose - from CoStar UK

By Paul Norman - Friday, October 05, 2018 11:08

Melburg Capital, the privately owned investment management specialist, has bought a 65,000 sq ft mixed-use regeneration opportunity in Bristol city centre for £10m, taking its acquisitions to £330m in the past 15 months.

The site, at 15-33 Union Street was bought off-market from a private UK institutional investor.

The mixed-use building, which is principally let to discount retailer Wilkinson’s, sits in Bristol’s prime retail pitch within close proximity to the Galleries Shopping Centre.

Melburg is understood to be planning to reposition the existing tenant profile for a regeneration scheme.

Melburg declined to comment.

Melburg were advised by Cooper Rose Real Estate.

Contact Giles Cooper

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Investment Sale - School Brow Retail Park, Warrington

On behalf of AEW UK, Cooper Rose Real Estate have been instructed to market a freehold retail warehouse investment in Warrington.

The salient points of the investment are as follows:

•       Warrington is a major commercial and retailing centre with strong communication links

•       Retail park comprising three well configured units

•       Open A1 Planning Consent

•       Let to three tenants trading as Office Outlet, Farmfoods and Dreams

•       Leases expire in 2024

•       Potential for future redevelopment and restaurant pod

•       Current income: £279,538 per annum

•       Price: £3,280,000, subject to contract and exclusive of VAT

•       Net Initial Yield: 8%

Contact Giles Cooper

 

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AAM completes £12m ‘Golden Triangle’ funding deal - advised by Cooper Rose Real Estate

As reported by CoStar in April 2017, this development has now reached PC:

Aberdeen Asset Management has agreed a £12m funding deal with Tungsten Properties for a speculative logistics development in the industry’s ‘Golden Triangle’ in Lutterworth, CoStar News can reveal.

The 130,000 sq ft logistics facility, which will be developed by Tungsten, is located close to the M1 and in turn the national motorway network, and is also well connected to the West via the A4303 to the A5 and Magna Park.

Oli Lord, fund manager at Aberdeen Asset Management, said: “We are delighted to have secured such a prominent and well located opportunity. We look forward to working with Tungsten to deliver a high quality product and take advantage of current favourable supply / demand dynamics."

The speculative industrial development is being marketed by the joint letting agents, MWRE and Burbage Realty, at £6.75 per sq ft.

Jeff Penman, Tungsten Properties, said: “We are delighted to be working with Aberdeen Asset Management to deliver this prime logistics facility. The 128,600 sq ft unit will be built to a ‘best in class’ specification, and will provide immediate access to J20 of the M1, close to Magna Park, Lutterworth, in the heart of the Golden Triangle.”

Cooper Rose Real Estate represented Aberdeen Asset Management; whilst Franck-Steier Price acted on behalf of Tungsten Properties.

Contact Ben Rose

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Sale of Jurys Inn, Derby

On behalf of Savills Investment Management, Cooper Rose Real Estate has sold the freehold investment in the Jurys Inn in Derby for a price of £20,000,000, reflecting a net initial yield of 5.85%.

The property comprises a modern 213 bedroom hotel constructed in 2008, located within the Cathedral Quarter of Central Derby, close to the core, pedestrianised retailing area and easily accessible via the inner ring road.

The property is let to Jurys Hotel Management (UK) Ltd, with surety from Vesway Designated Activity Company, for a term of 35 years from 19 June 2009 (expires 18 June 2044).

The current rent is £1,250,000 pa, subject to five yearly, uncapped RPI rent reviews.

Contact Giles Cooper

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Acquisition of Debenhams, Southampton

On behalf of private investors, Cooper Rose Real Estate has acquired the freehold interest in Debenhams, Queensway, Southampton.

The 285,303 sq ft store is let to Debenhams Retail plc at a current rent of £1,823,860 per annum, subject to annual fixed uplifts until March 2019, and then open market rent reviews.

The acquisition price is confidential. The quoting price was £31,250,000, refelcting a net initial yield of 5.47%.

Contact Ben Rose

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Acquisition of JD Wetherspoon & Santander, Norwich

On behalf of private clients, Cooper Rose Real Estate has acquired the freehold interest in The Bell Hotel, Orford Hill, Norwich for a price of £4.85m, reflecting a net initial yield of 5.38%, rising to 5.83% later this year.

The Bell Hotel is one of the strongest performing Wetherspoons in the UK and has recently undergone a £2.2m refurbishment.

The property is let to JD Weatherspoon plc on a lease with fixed increases until 2048 and Santander UK plc until 2020. The total current income is £278,000 per annum.

Contact Ben Rose or Giles Cooper

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Investment Sale - Preston Brook Contact Centre, Daresbury

On behalf of private clients, Cooper Rose Real Estate has sold the freehold interest in the Preston Brook Contact Centre in Daresbury, near Warrington, for a price of around £40m.

The property comprises a modern office / contact centre constructed in 1998, providing
158,471 sq ft across 3 floors.

The property is fully let to Capita Business Services Ltd, guaranteed by Capita Plc, servicing an outsourcing contract for O2, until 2041 at a passing rent of around £1,800,000 per annum. 

The rent is subject to annual, RPI linked rent reviews, collared and capped at 0% and 3%

Contact Ben Rose

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Investment Acquisition - Mercure Hotel, Livingstone, Scotland

On behalf of private clients, Cooper Rose Real Estate has acquired the heritable interest in the Mercure hotel in Livingstone, Scotland from the Aviva Linked Property Fund.

The property is let to Jupiter Hotels Limited for a term of 34 years from 24 August 1999 at a current rent of £678,192 per annum subject to RPI linked rent reviews and with an additional rent based on turnover.

The acquisition price was around £6,200,000.

Contact Ben Rose or Giles Cooper

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Sainsbury's, Buxton & Tesco Metro, Barrow-in-Furness

On behalf of private clients, Cooper Rose Real Estate has acquired two retail investments for a combined price of £4,255,000.

Contact Ben Rose or our joint agents Metis and Carrick Real Estate

Investment Acquisition - Sainsbury's, Wakefield

On behalf of private clients, Cooper Rose Real Estate has acquired the long leasehold interest in a supermarket investment in Wakefield.

The property is held on a 999 year long leasehold basis from 13 August 2014 and is let to Sainsbury's Supermarkets Ltd until 22 May 2036.

The property was acquired for a price of around £40m.

Contact Ben Rose or Sammy Whittaker

The Cannon Portfolio

On behalf of Threadneedle Pensions Limited, managed by Columbia Threadneedle, Cooper Rose Real Estate has sold a portfolio of nine high street retail investments to clients of BCM for a price of £11,400,000, reflecting a net initial yield of approximately 8%.

The properties are as follows:

East Grinstead – 53-59 London Road

Epsom – 58-60 High Street

Haverhill – 1 & 2 High Street

Ilford – 133A High Road

Norwich – 7-13 Orford Place

Southend on Sea – 189 High Street

Southend on Sea – 191-201 High Street

Strood – 84-89 High Street

Wallasey – 309-313 Liscard Road & 1-9 Wallasey Road

The total gross income is approximately £989,745 per annum.

Contact Giles Cooper or our joint agents Fawcett Mead

Investment Acquisition - House of Fraser - 12/18 West Street & 51/55 Tower Street, Chichester

The Charities Property Fund (“The Fund”), managed by Savills Investment Management, has purchased the freehold interest in the House of Fraser in Chichester for a price of £13.4 million.

The property comprises the only department store in Chichester and is situated in a prime trading position in the city centre. The store has recently been refurbished by the tenant and extends to 69,313 sq ft.

The lease has an unexpired term of in excess of 22 years with five-yearly rent reviews.

The price reflects a net initial yield of 5.26% and a capital value of approximately £193 per sq ft.

This follows The Fund’s recent sales of two smaller high street retail investments in Chichester, let to WH Smith and Oasis, for prices of £3.82 million, reflecting a net initial yield of 4% and a capital value of £688 per sq ft and £2.55 million, reflecting a net initial yield of 3.69% and a capital value of £1,141 per sq ft respectively.

Harry de Ferry Foster, Fund Director, commented: “Having recently sold two assets in Chichester at a combined yield of 3.88% - a record low, we welcomed  the opportunity to immediately buy back in at a 35% premium, with the benefit of a much longer lease. This asset has an extensive retail frontage and occupies an excellent spot opposite the Cathedral. It is a very attractive building and also offers a number of opportunities for alternative uses in the future”.

The purchaser was advised by Cooper Rose and Smith Price. The vendor was advised by Fawcett Mead.

Contact Giles Cooper