Property investors in the UK are finding far more attractive deals in the regions, the South West being particularly popular.
There is a good reason for this according to Vickery Holman’s Head of Investment Mike Oldrieve ‘value for money’, e.g. the latest Vickery Holman disposal of the Tyre and Exhaust Centre on Billacombe Road, Plymstock, Plymouth, which has just been sold for £910,000 reflecting a net initial yield of 8.7%.
The prominent building fronting Laira Bridge has a total floor area of 712 sq m (7,659 sq ft) and is let to Goodyear Tyre, lease expiring December 2018 at a rent of £84,000 per annum exclusive.
The unit was sub-let two years ago to ETB Worcester Ltd for a sub-rent of £45,000 per annum exclusive.
Mike Oldrieve comments further: “The main issue with the property investment market at the current time is the lack of quality stock and investors, particularly from London, are having to look to the regions where there are still opportunities although these are now far fewer and prices are on the rise”.
The property was acquired by a private investor who was advised by Will Jolly of Colliers International who comments: “My client, Ivill Properties Ltd, is a well-funded private investor who is particularly interested in the South West tyre and exhaust market from both an investment and operational point of view – we are always looking for opportunities to expand their network of motorist centres from Bristol to Penzance and all areas in between!”
