Acting on instructions from Orange Properties, Cheetham & Mortimer have negotiated the acquisition of a prime high street investment from Marley Pension Fund.
The investment was originally presented for sale in the Dodecca Portfolio, being marketed by KLM, but was subsequently rejected by their preferred buyer. The property is predominantly let to Costa on a lease scheduled to expire in 2024 at a modest rent of £39,000 per annum, but also includes two flats on the upper floors let on AST agreements.
The freehold was acquired for a price of £630,000 to show an equivalent yield of approximately 8%. Robert Millington commented “Whitby is an attractive seaside town with a low void rate and little potential for additional supply. The property is one of a limited number of units within the town that offers a large and regular configuration. Costa enjoys near monopolistic trading status as a national coffee retailer and accounts for over 75% of the income. This investment provides a low risk profile with strong underlying prospects for future rental growth and in our opinion is deserving of a lower yield profile”