Lunson Mitchenall are delighted to have advised on the acquisition of 154 Commercial Road in Portsmouth on behalf of Aspect Property Group for £2.40m from CBRE Global Investors.
The unit is let to WH Smith on a five year lease from January 2015 at a rent of £238,000 per annum and located within the prime pedestrianised pitch of Commercial Road.
The unit was marketed at an asking price of £2.80m with Lunson Mitchenall being able to negotiate a £400,000 discount from this level. It is unusual to sell a prime asset with only 18 months of income security. The sale price of 9.44% NIY therefore demonstrates what investors are willing to pay in today’s increasingly uncertain retail market.
James Cogavin, Director in Lunson Mitchenall’s Investment teams commented “We are pleased to have been able to secure the property for Aspect Property Group and hope to continue to find high yielding investments for their portfolio. This transaction demonstrates that the valuers have some catching up to do in the rebasing of retail values. This will be a key determinant of the level of transactional activity we are likely to see in the last quarter of 2018”.