Units 1-2 & 3, Kings Square Shopping Centre, West Bromwich
Atlas Real Estate have recently concluded the sale two retail units at the entrance to the Kings Square Shopping Centre, West Bromwich, for an institutional client.
Units 1-2 are let to Dorsman Estates, guaranteed by Peacock’s Stores Ltd, for a term of 10 years from 23 December 2005. The current rent is £94,000 per annum rising to £95,000 per annum in December 2009. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews.
Unit 2 is let to 99p Stores Ltd for a term of 15 years from 8 August 2005. The current rent is £100,000 per annum. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews.
The total income on the investment was £194,000 per annum.
The property was purchased by a private investor who paid a price of £2,200,000 reflecting a net intial yield of 8.34% assuming purchaser’s costs of 5.725%.