F&C Property Asset Management has bought a 38,500 sq ft Scarborough retail premises from The Duchy of Lancaster for £7.05m.
The purchase of Units 1 & 2 Chapmans Yard, represents a net initial yield of 4.69%.
NBC Apparel Ltd, trading as TK Maxx has a 20-year lease on Unit 1 at a rent of £230,000 pa, while JJB Sports has a 15-year lease on Unit 2 at a rent of £120,000 pa.
F&C Property’s head of in-town retail, Joanne Wilkes, said: “The purchase provides an opportunity to invest in large retail units on the edge of the town centre – a market sub sector that will become increasingly attractive as retailers move towards large store formats.
“At the same time, Scarborough has very little out of town retailing or large space units within the town centre, which should also underwrite future rental growth for the Fund.”
King Sturge, on behalf of Friends Provident Life Assurance Limited Commercial Fund, advised F&C Property Asset Management.
Christopher Dee acted for the Duchy of Lancaster.
References: EGi News 11/01/06
