Sutton Coldfield Municipal Charities (SCMC) has acquired the freehold interest in two Worcestershire properties, totalling £2.4million.
The Birmingham office of DTZ, part of UGL Services, acted on behalf of SCMC.
In the first of the deals, SCMC purchased 96 High Street in Worcester for £1.34million. The 2,313 sq ft retail property is located in the city’s prime shopping street and is currently let to clothing retailer, Fat Face which has 12 and a half years unexpired on its lease. The purchase price reflects a net initial yield of 5.72%.
SCMC has also purchased Units 1 and 2, Marlpool Lane in Kidderminster for £1.06million, reflecting a net initial yield of 6.88%. The 5,202 sq ft former public house has recently been converted into a convenience store which is let to AF Blakemore, trading as Spar, for 20 years, a vet’s surgery and a first floor flat.
FSP acted on behalf of the vendor on both sales, with Sampson Moore the joint agent on the Worcester sale.
SCMC was formally established in 1886, with the aim of improving the quality of life for people living within the boundaries of the former Borough of Sutton Coldfield. This is done primarily by making grants of circa £1 million each year to needy people and organisations. Its work is funded by income from an investment portfolio which includes property.
Jon Leedham, Senior Director at DTZ commented: “Both these acquisitions form part of the Charities’ commitment to investing in property with good and secure income to enable them to continue to provide grants and support to the local community.”