SHW and Allsop have sold a retail parade in Wallington, near Sutton, for £2,100,000 to a private investor on behalf of an institutional client.
The parade – totalling 7,250 sq ft at ground floor and 19 flats above, at 72-82 Woodcote Road, Wallington - was built in 2006 and has Tesco, SpecSavers and Caffe Nero as tenants.
Prior to the sale SHW acted for the owner to renew the Tesco lease for a 10-year unbroken term and create a new five-year lease to Nero. The total rents reserved after these asset management improvements was £162,750 pa and the price reflects a net initial yield, after normal purchaser’s acquisition costs, of 7.29%.
SHW and Allsop in the sale were jointly instructed to market the property, and an unconditional sale contract property was exchanged immediately prior to the date of the September 2023 Auction.
Martin Clark, investment surveyor and Partner at SHW said: “This sale, achieved above asking price, confirms that good product still attracts serious attention from investors seeking reliable income and with the foresight to anticipate the positive prospects for future yield compression.”