Store in Hereford city centre sells for £5.2m

Hereford Times: A prime retail site in the city centre has changed hands for £5.2 A prime retail site in the city centre has changed hands for £5.2

A PRIME retail site in Hereford city centre has changed hands for £5.2m

Friends Life Ltd -  care of AXA Real Estate Investment Managers and advised by Savills – confirmed today (Thursday) that it had sold  3 – 5 High Street to Hawkeye Properties.

The deal was done at around £5.2m reflecting a net initial yield of 8.1%.

Currently let to fashion retailer New Look, the site totals 36,107 sq ft (3,354 sq m) arranged over basement, ground and two upper floors.

The present lease is for 35 years expiring in March 2025 and generates an annual rental income of £450,000.

Andrew Main, investment director at Savills, said the site presented an opportunity to acquire a “well-configured fashion store” secured to a national covenant with attractive long-lease structures.

“The unit further benefits from a strong retail position with extensive frontage onto the High Street in Hereford, which has continued to thrive as a shopping destination,” he said.

During negotiations, Hawkeye Properties was represented by Baron Associates.

The sale is the second big boost to retail in Hereford city centre within an week that coincided with the opening of the Old Market development.

Maylord shopping centre also has a new owner promising developments “in due course” over the future for the quarter.

As reported by the Hereford Times, Lunar Holdings Sarl – a joint venture between affiliates of  real estate investors Apollo Global Management and M&M Asset Management – confirmed their takeover of Maylord with no related sums disclosed.

The new owners have appointed property consultancy Prime Retail as leasing agents and London based chartered surveyors Lee Baron as managing agents.

In a statement, the new owners said they were working a “number of new initiatives” to enhance the scheme and retail offer and hoped to make announcements in due course.

Herefordshire Council  owns the freehold for Maylord which is worth more than £33k a year in rent.

In December, the Hereford Times  revealed that receivers had been appointed to the centre with existing tenants facing an investigation into their occupancy rights.

Comments (6)

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1:05pm Thu 8 May 14

WYSIATI says...

Serious question:

if 3-5 High Town has rental income of £450000 a year how can Maylord Orchard be worth "more than £33000 a year"?

One property versus a shopping centre - really? Did I miss something?
Serious question: if 3-5 High Town has rental income of £450000 a year how can Maylord Orchard be worth "more than £33000 a year"? One property versus a shopping centre - really? Did I miss something? WYSIATI
  • Score: 5

7:09pm Thu 8 May 14

RogerLFC says...

'The sale is the second big boost to retail in Hereford city centre within an week' ~ Why is this a boost? The report just seems to point out that the ownership of the property has changed. Until I read this I didn't even know who the existing owners were! I'm more interested tho in who owns River Island in town. If that was rebuilt it would be a boost! It's been a bombed out wreck for nearly 4 years now!
'The sale is the second big boost to retail in Hereford city centre within an week' ~ Why is this a boost? The report just seems to point out that the ownership of the property has changed. Until I read this I didn't even know who the existing owners were! I'm more interested tho in who owns River Island in town. If that was rebuilt it would be a boost! It's been a bombed out wreck for nearly 4 years now! RogerLFC
  • Score: 9

10:42pm Thu 8 May 14

dodger3 says...

Figures quoted cannot be right.
Figures quoted cannot be right. dodger3
  • Score: 1

7:48am Fri 9 May 14

courtesycall says...

The Lloyds Bank building, let to Lloyds Bank, is also currently for sale for the princely sum of £3M. Are existing owners getting out before the reality of The Old Market centre hits home?
The Lloyds Bank building, let to Lloyds Bank, is also currently for sale for the princely sum of £3M. Are existing owners getting out before the reality of The Old Market centre hits home? courtesycall
  • Score: -8

7:51am Fri 9 May 14

courtesycall says...

"Serious question"
I guess Herefordshire Council only own the freehold ground rent. The big money goes to the head leaseholder from sub-letting the shops.
"Serious question" I guess Herefordshire Council only own the freehold ground rent. The big money goes to the head leaseholder from sub-letting the shops. courtesycall
  • Score: 3

8:19am Fri 9 May 14

courtesycall says...

According to my research, it would appear the reason no details have been released of the price paid by the new owners of Maylord because the centre was bought as one of 133 properties in a portfolio valued at £400M. Impossible to analyse without a full list of addresses but at an average of £3M for each property the buyer could be getting a bargain. The Prudential is supposed to have paid around £35M and the last owner £40M in 2008.
According to my research, it would appear the reason no details have been released of the price paid by the new owners of Maylord because the centre was bought as one of 133 properties in a portfolio valued at £400M. Impossible to analyse without a full list of addresses but at an average of £3M for each property the buyer could be getting a bargain. The Prudential is supposed to have paid around £35M and the last owner £40M in 2008. courtesycall
  • Score: 1

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