The property comprised two retail units trading as Snappy Snaps and Bowing Opticians with 19 flats over let on a ground lease; the total rental income was £129,600 per annum.
We erected a board on the property, prepared a brochure and advertised on line in order to conduct an extensive marketing campaign to find a buyer for this freehold investment. Following an informal tender it was decided to proceed with a joint offer from the two retail tenants. JPW Real Estate managed the due diligence process and advised on the investment sale which was completed in January 2008 at a price of £2,200,000 to show a net initial yield of 5.5%.
The sale posed the following challenges:
- Selling into a declining market.
- Delay caused by compliance with the residential tenant’s statutory right of first refusal.
- Dealing with an inexperienced purchaser who required mortgage finance.
- Structuring the transaction between the two retailers to give individual ownership and control and yet provide for common management of the building.
Click here to download sales brochure