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January 2017

Co-op, 100 South View Avenue, Caversham, Reading, RG4 5BB

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sold

The property is located in Caversham one mile from Reading town centre.  Let to Co-operative Group Food Ltd, guaranteed by Co-operative Group Ltd for a further 10 years.  5 yearly upward only reviews to RPI, collared and capped at 1%-4% per annum.  Current rent £63,834.18 per annum.  Offers sought in excess of £930,000 which reflects a net initial yield of 6.50%, assuming costs of purchase of 5.71%.

Franck-Steier Price has recently completed the sale of a convenience store investment in Caversham on behalf of a private investor.

The property is located in Caversham, one mile from Reading town centre, and comprises a ground floor convenience store of 3,748 sq.ft with three residential apartments on the first floor.  Externally there is a 12 space car park.

The ground floor is let to Co-operative Group Food Ltd, guaranteed by Co-operative Group Ltd for a term of 15 years from 8 July 2011. The current rent is £63,834.18 per annum.

The lease is held on FRI terms with five yearly upward only reviews to compounded RPI. The increases at review are collared at 5% and capped at 22% per review period.

The upper floor residential accommodation has been sold off on three 250 year leases from 29 September 2011 each at a rent of £1 per annum if demanded.

The purchase price of £930,000 reflects a net initial yield of 6.50%, assuming costs of purchase of 5.71%.

The purchaser was a private investor, represented by Peridot Consultancies.

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