Property consultants Alder King are reporting an active third quarter of the year in Penzance’s investment market.
Two investment properties at 61/62 Chapel Street and the former Dairy on the corner of Bread Street and Belgrave Street in the town are under offer to private investors and a further two opportunities are on the market through Alder King.
Tom Duncan, associate at Alder King’s Truro office, says that in the current economic climate many investors see commercial property as an attractive alternative to traditional funds.
“With many properties offering initial returns of over 8% after allowing for purchasers’ costs, these investment opportunities compare well,” he says. “Potential investors should always assess the associated risks of property investment but generally investment properties let to good quality tenants on good terms allow investors to manage their risk.”
Investment opportunities in Penzance’s retail centre include 1-3 The Bakehouse on Bread Street. This comprises three retail units within a larger, recently refurbished period building and generates £24,000 of annual rental income. The tenants include a hairdressers and a furniture shop. The freehold interest of the property is on the market for £250,000, representing a net initial yield in excess of 9%.
Elsewhere in the centre is the former Meeks furniture store at 13-14 Market Place. This property generates £54,000 of rental income from tenants including William Rogers Insurance Brokers and Northcliffe Media. Alder King is inviting offers in the region of £495,000, reflecting a net initial yield of 10.4%.
Tom Duncan adds: “Each of these properties generates relatively secure and long term rental incomes and therefore represents excellent investment opportunities. We’re confident that they will be of interest to investors.”
