A parade of shops on one of the main shopping streets in Derby is to be offered for auction with a guide price reflecting a yield of 22.6%.
The unbroken block of eight shops, on Albion Street, is partly let to Disney UK and Burger King, generating a total rent of £564,900 a year.
The parade is being offered at a guide price of £2.5m.
However, the extraordinarily high yield reflects the fact that the Disney lease is due to expire in March 2020 and although one of the vacant units is under offer, that is at a rent of just £20,000 a year.
“Buyers will be taking on the vacant shop and the Disney lease which expires in March, so it’s not going to be plain sailing for the first year or two until these get let/relet and the rents rebase,” said Allsop partner George Walker.
“As ever we have good interest with this pricing strategy. We will only know where the market is on the day of the auction.”
The parade is one of a total of 191 lots with an income of £10.3m which are set to go under the hammer at the firm’s 23 October auction, including 39 investments guided at over £1m.
A total of 67 of the assets in the catalogue are located in London and the South East.
Lots also include a mixed-use block on Garlick Hill, EC4, close to St Paul’s Cathedral, comprising a restaurant let until 2031 without breaks, and four serviced apartments. The property has a guide price of between £2.8m and £3m, reflecting a yield of 6%.
The auction will take place on October 23 at The Berkeley Hotel, SW1.
