On behalf of a Private Family Trust Red Kite has purchased the House of Fraser Store in Lincoln for £7.75m or a net initial yield of 6.5%.
This property has huge potential for further asset management in that if knocked down it could provide the space that large space retail users are desperate for in Lincoln – with a squeeze on the current dvelopment pipeline….watch this space but in the meantine the Family Trust has the securty of 30 year income.
The property is situated on the corner of Mint Street and the pedestrianised section of the High Street, the city’s prime retailing pitch. House of Fraser is one of the anchors on the High Street and other national retailers in the immediate vicinity include Marks & Spencer, BHS, Primark and Boots the Chemist.
The property is a prestigious department store of 82,000 sf ft that benefits from return frontage and access from both High Street & Mint Street. House of Fraser occupies it in its entirety trading on ground, first and second floors with ample ancillary space on the basement level.
The term is a 40 year FRI lease from 30th July 1999 expiring on 29th July 2039 with 5 yearly upward only rent reviews. The current passing rent is £520,089 per annum. Rent reviews for the duration of the unexpired term are upwards only to OMRV, the next review will be on 30th July 2014.
House of Fraser is one of the UK’s leading high street retailers with 62 department stores nationwide. It has over 5 million square feet of retail space in key town and city centres and regional shopping centres offering customers designer brands and exclusive collections at affordable prices.
Established for over 160 years it has a wide customer base with over 1 million account card holders and sales in excess of £1.25 billion (including concessionaires).
Simon Lewis of Lewis Ellis and partners acted on behalf of Red Kite and the Private Family Trust who bought the property directly from the vendor.