Property overview

Franck-Steier Price Ltd (FSP) has recently completed the acquisition of a new build retail investment for a private client investor.

The new build development comprised two single storey retail units fronting High Street, Pensnett, directly opposite Russells Hall Hospital. The scheme was let to Tesco & Greggs on 20 & 10 year leases respectively. The Tesco lease has breaks options at Years 10 & 15. Both leases have 5 yearly RPI reviews with caps/collars.

The combined passing rent was £61,400 per annum.

The property was purchased for a price of £880,000 which reflected a net initial yield of 6.60%, assuming purchaser’s costs of 5.8%.  The vendor was represented by Johnson Tucker & Wright Silverwood.