Hanningtons Estate hits the market

The Hanningtons Estate, a 1.6-acre freehold site in Brighton’s The Lanes district, has been brought to market for an asking price of £57m. Reflecting a capital value of £375 per sq ft, the price can be apportioned as £40.5m for the commercial element, reflecting a net initial yield of 7.49%, and £16.5m for the residential portion of the estate, at a gross initial yield of 6.56%. Offering 43 retail units, 11 office suites across four buildings and 63 flats arranged across 10 buildings, the estate comprises 152,161 sq ft of accommodation. It brings in a total gross income of £4.5m per year – £3.4m from the commercial elements and almost £1.1m from the residential. The retail portion of the commercial accommodation is fully let and occupied by well-known names such as Oliver Bonas, Joe & The Juice, Lulu Lemon, White Stuff, Flying Tiger, Pret A Manger, The White Company, Watches of Switzerland and Charlotte Tilbury. There are 15 large units fronting North Street, another four fronting East Street and the remaining 24 front Hannington Lane, Market Street, Brighton Place and Meeting House Lane. The main offices are located in Huntingdon House. There is also additional accommodation at: 10 Hanningtons Lane, 15a Brighton Place and 39-42 East Street. An additional management suite is at 2a Hannington Lane. Prime rents for grade-A space in Brighton stand at around £45 per sq ft, according to Knight Frank, which has been appointed to market the asset.