Property overview

Day Care Nursery, Edward Parry Centre, Coventry Street, Kidderminster DY10 2BP

under offer

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£1,145,000
Mar 2022

Day care nursery investment.

 

Located on prominent site on the edge of Kidderminster town centre and ring road. Coventry Street (A456) is a main arterial road into the town.

 

This former day care centre which has been used as a children’s nursery since 2012. and is currently let to Kenmare Estates Ltd, guaranteed by Mid-counties Co-operative Ltd.

 

The rent is £73,507 per annum, equating to only £8.89 per sq ft. There are annual RPI rent reviews up until October 2022. Each has a minimum increase of 2% and a cap of 3% per annum. On the basis of envisaged RPI growth until October 2022 the rent is expected to increase to £75,712. There is then an open market review at the 15th year.

 

The property was sublet in October 2016 to Mishi Nurseries Ltd on a 10 year term. The sub tenant had a break option during 2021 which they chose not to exercise. They are paying the passing rent.

Offers are sought in excess of £1,145,000 reflecting an initial yield of 6.06%.  Reversion to 6.25% in October 2022, on assumption of 3% RPI growth this year resulting in an underlying capital value of only £138 per sq ft.

 

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St Pauls Office Investments Retail & Retail Warehousing investments