September 23, 2015
Joseph Rowntree Reform Trust (Properties), advised by Nightingale Partners, has invested over £7m in three regional retail property investment deals.
In the largest transaction, JRRT has purchased the freehold interest in 63-73 Goodramgate, York from Town Centre Securities Plc, represented by HRH and Waterhouse Commercial Surveyors.
The 16,696 sq ft property is located in a busy trading location within the heart of the city, close to York Minster. It comprises a terrace of two large retail units let to Tesco Stores Limited and Bonmarche Limited, together with a café and restaurant.
Approximately 80% of the income is secured to Tesco Stores and Bonmarche under leases extending until at least June 2022, off passing rents equating to approximately £55 Zone A. The total current income is £232,000 pa.
The purchase price of £3.55 million reflects a net initial yield of 6.18%.
In Beverley, the freehold interest in 41 Toll Gavel has been acquired by JRRT for £1.73 million from a client of Colliers Capital, represented by Colliers International.
The prime retail property comprises a 4,543 sq ft two storey building let to WH Smith on a 5 year lease expiring on 22 December 2019 at a current passing rent of £110,000 a year.
The purchase price reflects a net initial yield of 6.00%.
Finally the Trust has acquired the freehold interest in 4-6 Penny Street and 3-5 Market Street, Lancaster, from clients of Jones Lang LaSalle for £1.78 million, reflecting a net initial yield of 6.38%.
The property comprises a prominent corner prime retail unit of traditional with frontages onto the pedestrianised Penny Street and Market Street. The building provides a total net internal area of approximately 5,634 sq ft.
Let in its entirety to JD Sports Fashion Plc on a 10 year lease expiring on 6th October 2024 (tenant break 6th October 2019), the current passing rent is £120,000 pa.