A fully-let retail parade in the centre of Nottingham sold for £2.12m at a yield of 9.3% at the latest Acuitus auction.
The lot at 13-25 Milton Street includes a KFC restaurant and offers the potential to convert self-contained offices on the second, third and fourth floors to residential.
Two industrial assets in Nottingham were also sold at the auction: at Lenton Lane Industrial Estate, a rarely-offered electricity generation facility sold for £1.47m, a yield of 4.6%; and an industrial estate on Gamble Street sold for £1.37m, a 7.2% yield.
Acuitus was acting jointly with Avison Young on the Nottingham assets, which attracted 30 bidders comprising both regional and national investors.
Acuitus investment director John Mehtab said: “These properties were each, in their own right, prime assets within their respective sectors: retail, infrastructure, and industrial. We saw significant investor interest for all the lots with competitive bidding on each asset.”
Elsewhere, a modern neighbourhood centre in Newton Abbot, Devon, sold for £1.96m at a yield of 7.3%.
Situated in a new urban extension to the town and mostly let to the Co-op, the property offered five-yearly CPI-linked rental increases across the four tenants.
High street retail assets, often with ancillary residential income in the form or ASTs or ground rents, continue to be popular, with several – including assets in Southampton, and Lincoln – selling prior to auction.
A modern purpose-built student accommodation investment in Cambridge sold for £1.6m, a yield of 7%. The property comprised of 14 single ensuite rooms and four twin ensuite rooms.
Photo © Acuitus
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