Coventry City Council has put up The Precinct, an open-air shopping centre in Coventry city centre on sale for £23.1m, reflecting a net initial yield of 9%. The Council is offering the property on a long leasehold basis until 2087, with an option to extend by a further 51 years, taking the expiry to 2138.
Through ongoing engagement with Coventry City Council, there may be potential to acquire the freehold or restructure the leasehold into a simpler, more efficient arrangement. The Council has held the long leasehold interest in The Precinct since 1988 and it has invested £20m to transform the asset, improving the public realm and making the area more attractive.
The retail parade extends to 90,842 sq ft and is anchored by JD Sports, which occupies 10,622 sq ft. Other national occupiers include Skechers, Holland & Barrett, Card Factory, Costa Coffee and Foot Locker. The scheme has a WAULT of 4.99 years to expiry. Notably, 60% of gross income is secured against the top 10 tenants, while 85% is secured against national multiple retailers.
The centre generates total gross annual income of £2.4m. The retail parade also includes Mercia Lodge, a 32,000 sq ft accommodation block located above the northern section of the scheme. It is let to English Rose Estates until 2138.
The asset boasts an occupancy rate of approximately 98.4% by floor area, underscoring strong tenant demand and a marked supply-demand imbalance in the local market.
Savills and FMX Urban Property Advisers are marketing for the sale of The Precinct.
Image: © Savills
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