Investor appetite for prime city centre retail will be tested in the next Acuitus sale when a parade in Newcastle goes under the hammer at a guide price reflecting a 10% yield.
The Grade II-listed retail parade at 139-153 Grainger Street, next to Eldon Square shopping centre and Grey’s Monument is listed for the 3 November sale with a guide price of £5.5m. It currently produces annual rental income of £560,225, which will rise to £600,225 when a newly agreed lease for one of its six units completes (lot 12).
New tenant Black Sheep Coffee will be joining Urban Outfitters, Yo Sushi (which has two units) and Dr Martens in the 22,344 sq ft property, with one more unit lying vacant.
Acuitus director Charlie Powter said: “Given this prime location in the pedestrianised heart of Newcastle’s shopping district and the quality of brands operating from the property, this is a rare opportunity to acquire an institutional-grade investment.”
The catalogue of 40 lots features seven properties with guide prices of more than £1m. A 19,638 sq ft industrial unit on Langage Industrial Estate in Plymouth that is let to the government until November 2024 is offered with a guide price of £1.75m (lot 13). The Land Registry has occupied the property for 30 years and the asset produces annual rent of £142,500.
A freehold retail and office investment is available in Datchet, Berkshire with a guide of £1.2m-£1.25m. The asset generates annual income of £96,188 pa and the offices and car park have residential redevelopment potential (lot 10).
Elsewhere in the sale, a substantial high street retail asset at 73-74A Broad Street in Reading is being sold with a guide price of £1.7m (lot 11). The property comprises two retail units which produce combined rental income of £141,000, with the majority of the income secured on KFC on a lease until 2037. It also offers potential residential conversion of the vacant second floor.
Acuitus chairman Richard Auterac said: “These two Berkshire assets are good examples of the type of asset that many investors are looking for: good existing income with asset management potential located in a growth area of the UK.”
The sale will be broadcast via livestream on the Acuitus website with bidding online, by telephone and by proxy.
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