United Carpets, Elizabeth Court, Green Street, Kidderminster, DY10 1JF
Franck-Steier Price has recently completed the sale of a retail warehouse and residential investment on Green Street in Kidderminster.
The property comprises a ground floor retail warehouse of 467 sq.m (5,030 sq.ft) with eight residential apartments above. The property is located on Green Street, Kidderminster, one of the main roads into the town centre. The site is adjacent to an Aldi supermarket and in close proximity to a new Morrison’s supermarket.
The ground floor retail unit is let to United Carpets (Northern) Ltd for a term of 15 years from 28 May 2008 at a rent of £55,000 per annum. The lease incorporates a tenant only break option at the expiry of the 10th year. The residential apartments have all been sold off on 125 year leases at a ground rent of £150 per annum per apartment, totalling £1,200 per annum. The total income is therefore £56,200 per annum.
The property sold for £600,000 representing a net initial yield of 8.85% assuming usual costs of purchase of 5.80%.