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January 2019

Tesco Express & Residential Investment, 47-49 Hobs Moat Road, Solihull, B92 8JJ

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sold

The property is located on Hobs Moat Road in a densely populated residential area situated between Solihull and Sheldon.  The property comprises a ground floor retail unit with two three bedroom maisonettes above.  The ground floor unit is let to Tesco Stores Ltd for a term expiring in March 2030 with a tenant break option in March 2025.  The current rent is £42,000 per annum.  One of the flats is let on an AST with a rent of £8,340 per annum and the other flat has been sold off on a long leasehold basis with a ground rent of £115 per annum.  The total income is £50,455 per annum.  Offers sought in excess of £715,000 which reflects a net initial yield of 6.70%.

Franck Steier Price has recently completed the sale of a neighbourhood retail and residential investment on behalf of Allmid Ltd.

The property is located on the B425, the main road between Solihull town centre and Sheldon and forms part of a large neighbourhood retail parade.

The property is a prominent end of terrace retail unit let to Tesco and extends to 3,224 sqft. The upper floors comprises two 3 bed maisonettes with separate rear access.

The ground floor is let to Tesco Stores Ltd on a 15 year lease from 24 May 2015. The tenant has a break clause in March 2025. The lease has 5 yearly open market reviews. The passing rent is £42,000 (£13 per sqft). Flat 47A is let on an AST at £8,340 per annum. Flat 49A has been sold on a long lease, expiring in March 2169 with a ground rent of £115 per annum.

The property was sold to a private investor for £752,000 which reflected an initial yield of 6.37%.

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