Aiken Commercial report that investors with cash reserves are still actively buying property despite the continuance of Economic Gloom in the forecasts. The fact is that there are few alternatives open to investors with cash in the bank. Interest returns on bank savings may be 2% whereas secondary retail investment property often show in excess of 9% in the current market with shops let to multiple retailers showing up to 7.5%.
Even after downgraded forecasts in December deals were set up and Aiken Commercial are pleased to see January completions on two retail investment deals in Gosport and Crediton.
53/61 Forton Road in Gosport has been sold by Aiken Commercial on behalf of a private investor. Let to the Sue Ryder charity and producing £23,540pa income, the sale reflected a yield of over 9%.
Southern Co Operative’s convenience store at Crediton in Dorset was acquired by Aiken Commercial on behalf of a private investor. It was let on a 15 year lease at £32,000pa and the purchase price reflected an initial return of 7.25%.
Gary Aiken reports “As well as buying and selling for private investors, we are fully retained to acquire retail property on behalf of the Local Shopping REIT who have funds available to purchase neighbourhood shopping centres, shopping parades and convenience stores across the South.”
