The property is a prominently located in the prime retail pitch of High Street, Kings Lynn. The property comprises a modern three store department store extending to 3,893.57 sq.m (41,910 sqft) which was comprehensively refurbished in 2011. The property is let to Primark Stores Ltd for a further 55 years and Primark paid a premium of £1.2m to take assignment of the lease from BHS in 2010. Current rent £305,000 per annum. 7 yearly upward only reviews to open market value. Offers sought in excess of £6,000,000 which reflects a net initial yield of 4.75%, assuming costs of purchase of 6.63%.
Franck-Steier Price has recently completed the sale of a prime long let high street retail investment in Kings Lynn on behalf of an overseas client.
The property is located in the prime retail pitch of High Street, Kings Lynn, and comprises a three storey department store building extending to 41,910 sq.ft.
The property is let to Primark Stores Ltd for a term of 99 years and two days from 29 September 1972 (54 years unexpired). The lease is held on FRI terms with 7 yearly reviews to open market value. The current rent is £305,000 per annum.
The tenant paid a premium of £1.2m in 2010 to take assignment of the lease and subsequently substantially refurbished the building in 2011, extending the 2nd floor by 8,186 sq.ft.
The purchase price of £6,150,000 reflected a net initial yield of 4.65%. The purchaser, Kames Capital, was represented by JLL.