Acquisition of retail investment in Carlisle
Fergus Laird, Naylors’ head of investment received a call from a potential client through a recommendation from a solicitor. The client historically invested in residential property and has enjoyed a significant level of success with their business interests. However they were now keen to progress to commercial investments, attracted by the fact that they are less management intensive.
The client’s remit was to build a commercial property portfolio to the value of £5m, but offering a relatively safe income stream. Having established the client’s requirements Naylors circulated a confidential client requirement to all local and regional agents. However as there are currently a number of similar requirements in the market place opportunities were scarce.
Another firm of agents had recently started marketing a retail investment opportunity in Carlisle which we identified as a potential opportunity and made the client aware. The property offered a securely let retail investment with a significant surrounding residential catchment. It also benefited from being located on a main arterial route (A7), with prominent roadside frontage, 1 mile north of Carlisle city centre. The modern, 3 storey, detached building was developed in 2010 and offers ground floor retail and upper floor residential accommodation extending to 15,455 ft. Securely let to Sainsbury’s and Coral with a WAULT of 10.35 years, the property achieves a total passing rent of £140,750 per annum with uncapped RPI uplifts to Sainsbury’s.
The client agreed that the investment opportunity matched their criteria. Naylors inspected the property and reported back to the client with recommendations. From here Naylors negotiated with the vendors agents, agreed a price and concluded the acquisition in a smooth and timely manner.