Demand for blue-chip tenants in high footfall locations is driving a resurgence in investment in retail property in the West Midlands, according to commercial property agent Bond Wolfe.
The Birmingham-based agency has concluded three recent sales that demonstrate investors’ keen appetite for the right retail opportunities.
London investment company The Harkalm Group has acquired two properties occupied by the Domino’s restaurant chain, paying £450,000 for the pair.
Unit 4D1, The Quadrant, Alcester Street, Redditch, is let to DP Realty Ltd, trading as Domino’s, for a term of 20 years, expiring in 2034 with a passing rent of £18,000 per annum.
The second property is at Unit 4, Barracks Road, Newcastle-under-Lyme, which is let to DP Realty Ltd on a 30 year term expiring in 2034 with a passing rent of £18,500 per annum.
The Harkalm Group was advised by Axioum DWFM in Edgware, London, and Clark Brookes Turner Cary Solicitors acted for the seller.
And in a further sale, 16 Alcester Road South in Kings Heath, Birmingham – one of a number of properties that Bond Wolfe has under offer along the parade – has been sold to a private investor for £315,000.
The property is let to Barnardo’s on a ten year lease at a passing rent of £24,000.
James Mattin, managing director agency at Bond Wolfe, said: “These sales are typical of what investors are looking for at the moment – strong performing tenants in high footfall locations.
“Despite the ongoing interest rate hikes, appetite remains strong for these types of assets, particularly from investors looking for secure medium to long term income.”
