CBRE Investment Management is selling a prime retail block located adjacent to Brixton Underground station for £18.5m.
Units located at 421-427 Brixton Road, 16 Atlantic Road and 2 Electric Lane, SW9, are being sold for a net initial yield of 6.25%.
The retail parade is currently let to Sainsbury’s, HSBC Bank, Vodafone, WH Smith, Argos and Five Guys. Sainsbury’s serves as the anchor tenant, contributing 32% of the total income, with its lease secured for a further 15.6 years.
The property boasts a strong WAULT of 7.2 years to lease expiry and 6.9 years to break, generating a total annual income of £1,232,000.
CBRE IM and Squire & Partners architects have assessed the site’s development potential. A feasibility study identified Unit 3, Atlantic Road (occupied by Argos) as a possible redevelopment opportunity, subject to planning consent.
A concept scheme has been produced, proposing a mixed-use retail and office development of around 26,000 sq ft, spread over a basement, ground floor and four upper levels.
CBRE IM has instructed TW Keil to look for a potential buyer.
Image © TW Keil
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