A key Oxford Street property has been placed on the market by Legal & General last week – and it is attracting strong interest from investors, writes Gill South.
L&G’s proposed sale of 419 Oxford Street, W1, is regarded as one of the few good retail opportunities currently available at the moment in the West End.
The asking price for the 23,000 sq ft property, opposite Selfridges, would reflect a yield of 5.54%.
It is let jointly to Principles, a Burton Group subsidiary, which pays £720,000 pa, and Keith Cardale Groves, part of General Accident Insurance, which pays £305,000 pa.
This equates to £247 per sq ft zone A rents on the retail element on basement, ground and first floor and £25.50 per sq ft on the offices.
Keith Cardale Groves is known to be anxious to vacate when its lease expires in three years’ time. Principles’ lease runs for a further 10 years. Jones Lang Wootton is acting for L&G.
Meanwhile L&G has sold the freehold of the Safeway supermarket in Kidderminster for £4.3m, reflecting a net initial yield of 7.35%.
The 38,238-sq ft store, held in L&G’s Managed Fund, was built for Safeway in 1987. It is let to Safeway for 35 years from December 1987 at £325,000 pa, equating to £8.10 per sq ft.
Nelson Bakewell acted for the vendor, while Hatter Laurie introduced the property to an in-house client of Erdman Lewis, believed to be GUS.
