Units 1-2 & 3, Kings Square Shopping Centre, West Bromwich
Franck-Steier Price have recently concluded the sale two retail units at the entrance to the Kings Square Shopping Centre, West Bromwich, for an institutional client.
Units 1-2 are let to Dorsman Estates, guaranteed by Peacock’s Stores Ltd, for a term of 10 years from 23 December 2005. The current rent is £94,000 per annum rising to £95,000 per annum in December 2009. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews.
Unit 2 is let to 99p Stores Ltd for a term of 15 years from 8 August 2005. The current rent is £100,000 per annum. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews.
The total income on the investment was £194,000 per annum.
The property was purchased by a private investor who paid a price of £2,200,000 reflecting a net intial yield of 8.34% assuming purchaser’s costs of 5.725%.