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Store in Hereford city centre sells for £5.2m
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.
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