Acting on instructions from Standard Life Investments, Cheetham & Mortimer has arranged a sale of the freehold interest at 74 King Street and 39-41 Cross Street in this imposing mixed-use retail/residential investment to a private client of Christopher Dee for £3,020,000 to show a net return of 8.4%.
The building comprises the Grade II Listed former Royal Sun Alliance offices that were subdivided and refurbished in 2001. It occupies a very prominent corner position opposite the pedestrianised section of this renowned street.
The basement, ground and first floors provide approximately 6,500 sq ft (604 sq m) of retail accommodation. The majority of the floor space is let to international fashion brand, Diesel, for an unexpired term of approximately 10 years at a passing rent of £200,000 per annum with two additional smaller units fronting Cross Street, generating an additional income of £69,000 per annum. The upper floors comprise 12 residential apartments that have been sold off on a long leasehold basis.
Robert Millington, Partner at Cheetham & Mortimer comments:
"Increasing levels of occupier demand for representation along King Street have finally helped to stabilise rental values. In turn, this has generated renewed investor confidence in the pitch, albeit yields are reflective of the huge disparity between rack rental values and the historic rental tone. King Street would be a beneficiary of a rating revaluation and we anticipate that more investment deals will flow during the course of the next 12 months".