Property overview

Tesco, Brighton Road, Horsham & Co-op, Alphington Road, Exeter

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£1,965,000
Feb 2013

Franck-Steier Price has recently completed the acquisition of two new convenience store investments for a private pension fund client.

The Horsham property is let to Tesco on a new 20 year lease from 15 January 2013. The tenant has an option to break at Year 10. The current passing rent is £75,000 per annum, there are 5 yearly RPI reviews with a collar/cap of 0-5%.

The Exeter property is let to Southern Co-operative on a new 15 year lease from 18 January 2013. The current passing rent is £67,500 per annum, there are 5 yearly RPI reviews with a collar/cap of 1-4%.

The properties were purchased in only 10 working days for a combined price of £1,965,000 which reflected a blended net initial yield of 6.85%, assuming purchaser’s costs of 5.8%.  The vendor was unrepresented.