Tesco Express, 20/30 Caerleon Road, Newport, Gwent, NP19 7BX
Franck-Steier Price has recently completed the sale of a convenience store investment on behalf of Tencent Holdings.
The property is located one mile from Newport city centre in a densely populated residential suburb The property comprises a 2010 built two storey convenience store with eight car parking spaces to the front elevation.
The property is let in its entirety to Tesco Stores Ltd for a term of 15 years from November 2010. The lease is held on FRI terms subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 4% per annum compounded. The current rent is £44,409 per annum.
The purchase price of £650,000 reflects a net initial yield of 6.46%, assuming purchaser’s costs of 5.80%.
The purchaser was a private investor, represented by Cushman & Wakefield.