Aldi, Costa, and Little Pioneers Nursery, Corinthian Park, Grovefield Way, Cheltenham, GL51 6TA
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Atlas Real Estate has recently completed on the sale of a newly completed convenience food anchored retail scheme in Cheltenham, on behalf of Hinton Group.
The property was sold to Aberdeen Standard Investments, represented by Joiner Cummings.
The property comprise a 18,500 sq.ft Aldi supermarket, a 2,200 sq.ft Costa Coffee Drive Thru unit and a children’s day nursery extending to 5,404 sq.ft.
The supermarket is let to Aldi Stores Ltd for a term of 25 years from September 2021. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.
The coffee unit is let to Costa Ltd for a term of 15 years (10 year tenant break option). The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews to RPI collared at 1% and capped at 3% per annum compounded.
The day nursery is let to Kenmare Estates Ltd (trading as Little Pioneers), guaranteed by Midcounties Co-operative Ltd, for a term of 25 years. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews to open market value. The first two reviews will be subject to minimum fixed increases of 1% per annum compounded.
The total combined income is £495,000 per annum.
The property was sold for £10,600,000 which reflects a net initial yield of 4.37%.
Ben Blackwall, Director “This is a fantastic development at a gateway site into Cheltenham. It is the culmination of over five years of hard work by Hinton Group to deliver the planning on the site and end product. Thanks must go to our funding partner Aberdeen Standard Investments and their agent Joiner Cummings.’
