F&C Property Asset Management has bought a freehold B&Q store in Leatherhead for £15m.
The deal reflects a 5.21% yield.
The 34,365 sq ft property was bought from Liverpool Victoria and is currently undergoing a refurbishment, including the addition of a 12,350 sq ft mezzanine floor.
B&Q occupies the property on a 35-year lease expiring in 2020.
The rental value is approximately £25 per sq ft.
George Cotton, F&C’s head of out of town retail, said: “Stock selection is becoming increasingly important in driving performance within the retail warehouse sector.
“With its superb location and excellent anticipated returns this property represents a prime investment for the fund.”
F&C Property Asset Management, on behalf of the Friends Provident Commercial Fund, was advised by Jones Lang LaSalle.
Hoddell Stotesbury Morgan acted for Liverpool Victoria.
References: EGi News 26/07/05
