The property is located in an established retail warehouse location in Kettering town centre. Two adjoining retail warehouse units extending to 33,928 sq.ft with 147 car parking spaces. Let to Simondo Properties Ltd for a term of 150 years from 1 February 1986 (120 years unexpired). Units are sublet on occupational leases to B&Q and Millbrook Healthcare. Current rent £36,500 per annum. Offers sought in excess of £690,000 which reflects a net initial yield of 5.00%, assuming costs of purchase of 5.80%.
FSP has recently completed the sale of a retail warehouse ground rent investment in Kettering on behalf of a private investor.
The property is located on the edge of Kettering town centre on Meadow Road and comprises two retail warehouse units extending to 33,928 sq.ft.
The property is let to Simondo Properties Ltd for a term of 150 years from 1 February 1986. The lease is held on full repairing and insuring terms.
The current rent is £36,500 per annum.
The rent is calculated on the basis of a base rent of £11,500 per annum which is increased annually by one tenth of the difference between the sub-rents received by the long leaseholder in any given year and £115,000. The retail warehouse units are sub-let to B&Q and Millbrook Healthcare.
The property sold for £630,000 which reflected a net initial yield of 5.51%. Reid Rose Gregory represented the purchaser, a private investor.