Sainsburys Local, Former Red Lion Public House, Lawnswood Road, Wordsley, Stourbridge, DY8 5PH
Franck-Steier Price Ltd (FSP) has recently completed the sale of a Tesco Express investment in Wordsley on behalf of a developer client.
The property is lcoated in Wordsley in an established retail parade and comprises a former public house. The property extends to a total of 4,388 on ground, basement and first floor.
The property is let to Sainsbury’s Supermarkets Limited on a new 15 year lease (tenant break at year 10) at a rent of £61,000 per annum. The lease is subject to 5 yearly reviews to annually compounded RPI (collared at 1.5% and capped at 3.5%).
The property sold for £875,000 which reflects a net initial yield of 6.60%, after purchaser’s costs of 5.80%. The purchaser was a private investor.