Victoria Avenue & Chapel Row, Borrowash
London - M25
Dba320
Tenure: Freehold
Tenancy: Multi Let
Investment summary
• Located in the suburb of Borrowash, approximately 8 km (5 miles) east of Derby.
• Dominant retail offering on a large island site.
• No national retailer foodstore competition within Borrowash.
• Prominent five unit retail development totalling 27,869 sq ft, anchored by a foodstore.
• Predominantly let to Somerfield Stores Ltd (trading as The Co-operative), with surety from The Co-operative Group Food Ltd.
• The remainder of the scheme is let to Nationwide Building Society (trading as Derbyshire Building Society), Wilsons Pharmacy, Four Seasons and 3 Chefs.
• Total current income of £265,853 per annum reflecting a low average overall rent of £9.54 per sq ft.
• The Co-operative have in excess of 24 years unexpired with the investment providing an Average Weighted Unexpired Term Certain of approximately 21 years.
• Annual fixed rental increases of 2.25% to The Co-operative’s lease, providing guaranteed income growth.
• Freehold interest.
• Seeking offers in excess of £3.6 million reflecting an attractive Net Initial Yield of 6.98%, assuming standard Purchaser’s costs of 5.80%.
2014 - 7.11% | 2023 - 8.38%
2015 - 7.24% | 2028 - 9.20%
2016 - 7.37% | 2033 - 10.12%
2017 - 7.50% | 2036 - 10.73%
2018 - 7.64% |