Altitude Investments, a Singer Vielle Franchisee, are pleased to announce the recent sale of another investment; the investment was the Tesco Express in St Austell.
The entire property is let for 20 years to Tesco Stores Limited under the terms of a lease dated 1 October 2012 at a passing rent of £48,000 per annum. There is a tenant’s option to break on expiry of the 10th year of the term. The property came to market in Mid July quoting £700,000 at 6.48% net initial yield and sold 4 working days later for £735,000 – a net initial yield of 6.17%. It was sold on behalf of a very delighted local development company to a pension fund.
Off the back of that, Altitude managed to buy another Tesco unit in Tingley, Leeds. The property is let to Tesco Stores Ltd for a term of 20 years from 28 October 2013 at an initial rent of £47,000 pa. There is also a tenant break after the 10th year of the term. Altitude were acting on behalf of a private local investor and bought the investment for £675,000 making a net initial yield of 6.6%
George Turnbull form Altitude comments “it’s great to have another two case studies of how effectively and efficiently we can transact commercial property. The clicktopurchase® technology is really gaining traction in today’s market and is changing the way commercial property is being sold. Increasing the liquidity of property really benefits it as an asset class to investors and will become more and more common as we continue to grow.”
