July 21, 2014
Lumina Real Estate Capital (LREC), a leading real estate investor and advisory company, has purchased Victoria Buildings in Stockton Heath, south of Warrington from LPA Receivers, for £8.18 million.
The purchase reflects a net initial yield of approximately 6% and a reversionary yield of 7.75% from letting of vacant space and fixed rental uplifts.
Victoria Buildings is situated on Grappenhall Road and London Road, and together with the adjacent 93 London Road, which is included within the sale, comprises 33,000 sq ft of leisure and retail accommodation arranged across 11 units, over ground, first and second floors.
The property is currently let to nine tenants, with two vacant units. Existing occupiers include The Slug and Lettuce, Pizza Express, Piccolino, Le Bistrot Pierre and Toni & Guy, with a weighted average unexpired lease term in excess of 13 years.
James Armstrong, Investment Director at LREC commented: “We were delighted to have secured and delivered this asset on behalf of Lumina’s Special Situations Fund II. The property provides a strong existing income stream, whilst also offering immediate opportunities for asset enhancement.”
Stockton Heath is an affluent district of Cheshire, benefitting from a strong daytime and thriving evening economy, focused on the leisure offer provided within Victoria Buildings.
At Stockton Heath LREC was advised by Capita and the vendor was represented by GVA.
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