23 Pittville Street, Cheltenham, GL52 2LQ
Franck-Steier Price has recently completed the sale of a multi-let retail unit in Pittville Street, Cheltenham, on behalf of Barberry Developments Ltd.
The property was a former Lloyds Bank which Barberry purchased vacant and refurbished to provide a ground floor retail unit with ancillary basement and first floor storage, a ground floor kiosk and two upper floors of gym accommodation.
The property was fully let on completion of the sale producing a total income of £100,000 per annum.
The majority of the income is let to CEX (Franchising) Ltd, guaranteed by CEX Ltd, on the retail unit for a term of 10 years from October 2008 at a rent of £81,000 per annum.
The kiosk is let for a term of 5 years from November 2009 (tenant break option in the 2nd year) at a rent £8,000 per annum. The gym is let for a term of 10 years from February 2010. The rent of £11,000 per annum increases annually by £1,000 per annum.
The investment was purchased for £1,185,000 which reflects a net initial yield of 7.98%, after costs of 5.8%. The purchaser was a private client of GCW.