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