Colliers International’s Retail Capital Markets team has sold a 30,918 sq ft freehold purpose built retail warehouse unit, on South Ealing Road, Ealing, London, on behalf of LaSalle Investment Management, to clients of CBRE GI, for £14.5 million. This sale reflects a net initial yield of 3.99%.
Located in a prominent and accessible location, close to South Ealing Underground Station and the M4, the building is occupied by Wickes Building Supplies Limited. The sale encompasses a new tenancy agreement with Wickes, with an unexpired term of 13.25 years (expires on 23rd June 2031), at a current passing rent of £617,520 per annum, reflecting £20.00 per sq ft. There will be five yearly upward only open market rent reviews, with the next review on 24th June 2021.
, Head of Out of Town Retail Investment at Colliers International commented: “This site is not only a well-operating asset to a secure FTSE 100 listed retailer, but it also holds redevelopment potential for the new owners. For our client the sale offered the opportunity to achieve a premium price which could not have been achieved 12 months ago.”
Tom Hill, Fund Manager at LaSalle Investment Management commented, “Investors are increasingly drawn to properties let to ‘bulky use’ retailers as it is considered that these will be more resilient to the rise of e-commerce. This property also offered long term redevelopment potential and as a result attracted very strong interest from a range of buyers. The sale crystalized a strong return for our pension fund client.”