JR Capital has completed the purchase of a supermarket in Chepstow, Wales for £4.4m.

 

The property provides 10 years of income secured to Marks and Spencer Plc and the purchase price represents a Net Initial Yield of 6.2%.

 

The property is located on a large freehold site in the upmarket town of Chepstow, which is on the borders of England and Wales and close to both Cardiff and Bristol. Trading as a food store it is the only premium food offering in the town and one of the best performing M&S stores in the region.

 

The property was acquired in joint venture with one of JR Capital’s private Middle Eastern investors and will be hold as a long term investment.

 

This is the 3^rd investment that JR Capital has made post Brexit for its regional long income platform and follows the purchase of a £4.9m long let retail warehouse in the South West of England from London Metric in an off-market transaction 2 weeks before Brexit.

 

Chepstow was acquired from Columbia Threadneedle Investments. Finn & Co represented the vendor and JR Capital was unrepresented.

 

John Collier-Wright, founder and chief executive of JR Capital said: “We are pleased to have completed another investment for our long income platform. Chepstow provides secure long term income with potential to add value by way of a lease re-gear or re-development of the site in the long term. Despite the uncertainty this year in the market we have remained active in the months leading up to and following the Brexit vote. We remain bullish on the UK commercial property market and there is strong appetite from our Middle East private investors looking for long term income. The current weak sterling, which represents a circa 20% discount to the long term average, makes UK real estate even more appealing at the moment.

 

We will continue to take advantage of the current market uncertainty over the next few months and we expect activity across the market to pick up in 2017.

 

You can also ready the the article in CoStar here.