Clerical Medical has bought The Avenue Centre in Bournemouth’s prime retail pitch for £11.65m.
The 100,000 sq ft centre currently generates £1.79m pa in rent reflecting a 6.5% yield on the investment. Principle tenants include Marks & Spencer, Etam, HMV, DCA Industries, Dollond & Aitchison and Tie Rack.
According to Richard Ellis’s Dominic Walton the ground floor is fully occupied and accounts for 95% of the rental income. The first floor is let on short term tenancies. He adds: “This is what gives an interesting twist to the deal. While we get the standing investment from the let shops there is also a refurbishment opportunity on the first and second floors.”
Richard Ellis, managing agent of the centre, advised Pension Funds Securities Ltd (ICI’s Pension Fund) in the sale.
EGi News 30/08/96
