£4.9m Investment Completed in the South West of UK

Posted by JR-Capital in News

JR Capital has completed the purchase of a £4.9m retail warehouse investment secured to CDS Superstores (The Range) for 18 years.


The property is located in Somerset in the South West of the UK and was acquired from London Metric Property Plc in an off-market transaction.


The price represents a Net Initial Yield of 5.75%.


The property was recently constructed in 2014 and is a high quality purpose built retail warehouse with 124 car parking spaces sitting on a large site of circa 2 acres.


The Range is a national retailer with over 120 stores across the UK selling homeware, leisure and garden furniture.


The property was acquired in joint venture with one of JR Capital’s private Middle Eastern investors. JR Capital co-invested into the deal.


Alder King acted for JR Capital and London Metric Property Plc were not represented.


John Collier-Wright, founder and chief executive of JR Capital said:


“We are pleased to have completed another off market transaction.


Let off a low rent of under £8psf the property provides 18 years of secure income with minimum fixed annual uplifts of 2.5% p.a. It fits well within the investment criteria of our long income platform.


We have been in a period of uncertainty this year leading up the Brexit vote at the end of this month and we have been able to capitalise on it by making a number of key acquisitions whilst others are not investing. Regardless of the outcome of the Brexit vote we will remain bullish on the UK as a whole and particularly the commercial property market. We expect the market for long dated income producing assets to remain strong in the current historic low interest rate environment”.

15 Jun 2016