The Japanese owner of tyre retailer Kwik-Fit is selling 21 UK roadside centres, as part of a sale-and-leaseback deal.
Japan’s Itochu Corporation has mandated Cushman & Wakefield to sell the freeholds for around £16.2m, representing a blended net initial yield of around 6% (subject to 7.73% purchasers’ costs).
The 21 centres bring in passing rent of just over £1m, reflecting £8.59 per sq ft. The portfolio is being marketed as a long-dated, index-linked income play.
When the sale completes, the properties will be let to Itochu’s UK top-co, European Tyre Enterprise Limited, for 15 years without a break.
Bids are expected to be submitted later this week.
It is not the first time that Itochu has tested the market for a sale, having previously put the portfolio on the market around a year ago via different agents before deciding against it.
It is understood that LondonMetric Property, which had placed the portfolio under offer last time, is reviewing whether to place a bid.
All parties declined to comment.
The 21 locations are:
- Acle
- Aylesbury
- Banbury
- Biggleswade
- Braintree
- Chesham
- Chester-le-Street
- Chipping Norton
- Colchester
- Dereham
- High Wycombe
- Holt
- Huntingdon
- Maresfield
- Milton Keynes
- Norwich (x2)
- Rainham
- Royston
- Stevenage
- Windsor
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