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 benchmark topping Fund’s recent sales of two smaller high street retail investments in Chichester, let to WH Smith for £3.82 million, reflecting a net initial yield of 4%, and Oasis for £2.55million, reflecting a net initial yield of 3.69% respectively. These delivered a combined capital value of £818 per sq ft.
The purchaser was advised by Cooper Rose and Smith Price. The vendor was advised by Fawcett Mead.
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 yield 35% higher, with the benefit of a much longer lease and the added benefit of a capital value per sq ft that was 75% cheaper, reflecting the very low rent being paid by House of Fraser. This asset also has extensive retail frontage and occupies an excellent position opposite the Cathedral. It is a very attractive building and offers a number of opportunities for alternative uses in the future.”
Citigate Dewe Rogerson
Patrick Evans / Stephen Sheppard / James Madsen / Alice Stewart
Tel: +44 (0)20 7282 2966