Addington Capital, the property investment and asset management specialist has sold 109-117 High Street, Cheltenham, a mixed-use retail and offices property, to Picton (UK) REIT (SPV) Limited for £5.3 million.
The property is owned by a joint venture managed by Addington. The JV acquired the property in 2015 as part of the Retail Plus General Partnership Ltd.
Addington has since redeveloped the building, converting the redundant upper floors to create modern office space and a new courtyard at first floor level and refitted out the retail space. A successful letting programme has resulted in the building now being fully let. Tenants include Just Go Holidays which occupies 11,193 sq ft of office space over the two floors and 4 car parking spaces. The retail space is let to Tesco, Dodo Pizza and Barnado’s.
The property provides a current net income of £409,699 per annum with fixed uplifts in the leases to take the income up to £511,798 per annum.
David Dalrymple, Partner at Addington Capital said, “After a redevelopment of the building followed by a successful leasing campaign, we have re-purposed this tired, old high street building to provide a contemporary office and retail space in the centre of the town which has attracted some strong tenants. It is now the right time in the portfolio’s cycle to sell and we are pleased to have found a strong purchaser. Cheltenham is a thriving regional town and the demand for quality real estate continues to grow.”
KLM advised the vendors on the deal.
