Grosvenor Europe has appointed agents to sell a strip of retail assets at 42-60 Kensington High Street, W8, for more than £53.8m – a net initial yield of 3.75%.
Knight Frank is seeking offers for the 51,629 sq ft freehold retail accommodation where tenants include Zara, Uniqlo, Simit Sarayi, Joe & The Juice, gym operator Spinaddikts and The Realbuzz Group.
The property has a current passing rent of £2.1m pa. It has a range of lease expiries of between 2021 and 2032 and a weighted average unexpired lease term of 6.2 years.
The asset is pitched as having “fantastic curb appeal” with a 145ft frontage onto Kensington High Street.
Retail occupational demand has fallen to its lowest level since 2009, according to the latest RICS UK Commercial Property Market Survey, with as many respondents seeing an increase in demand as there were seeing a decrease.
However, despite the uncertainty surrounding the sector, some investors are prepared to pay high prices for town centre assets that benefit from high footfall. DTZ investors has placed Delancey’s Shop Stop retail parade at Clapham Junction Station under offer for circa £130m on behalf of Strathclyde Pension Fund, EG revealed last week. The agreed price represents a net initial yield of around 3.25%, representing a significant premium on the £100m asking price and reflecting a circa 4% yield.
Grosvenor Europe acquired 42-60 Kensington High Street in 2015 for around £50m from Singaporean company Lum Chang.
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