Co-op, 100 South View Avenue, Caversham, Reading, RG4 5BB
Franck-Steier Price has recently completed the sale of a convenience store investment in Caversham on behalf of a private investor.
The property is located in Caversham, one mile from Reading town centre, and comprises a ground floor convenience store of 3,748 sq.ft with three residential apartments on the first floor. Externally there is a 12 space car park.
The ground floor is let to Co-operative Group Food Ltd, guaranteed by Co-operative Group Ltd for a term of 15 years from 8 July 2011. The current rent is £63,834.18 per annum.
The lease is held on FRI terms with five yearly upward only reviews to compounded RPI. The increases at review are collared at 5% and capped at 22% per review period.
The upper floor residential accommodation has been sold off on three 250 year leases from 29 September 2011 each at a rent of £1 per annum if demanded.
The purchase price of £930,000 reflects a net initial yield of 6.50%, assuming costs of purchase of 5.71%.
The purchaser was a private investor, represented by Peridot Consultancies.