Franck Steier Price has completed the sale of the St Johns way Shopping Centre in Knowle on behalf of Wesleyan Assurance.
The 1960’s shopping centre is located in the heart of Knowle, an affluent commuter suburb 3 miles from Solihull.
The scheme comprises 24 ground floor retail units with residential apartments above.
The shopping centre is let to 23 tenants, a mix of predominantly regional and local covenants although 29% of the income is secured to Tesco. The WAULT is 5.3 years to expiries & 3.0 years to breaks. Most of the residential flats have been sold off on long leaseholds with just over 60 years unexpired on each lease. The overall income is £486,650 per annum, rents are around the £30 ZA mark.
After strong competition for the asset the investment eventually sold for £6,350,000 which reflected a net initial yield of 7.19%.
The property was purchased by a private property company investor.