Supermarket investment fetches 5 per cent yield
Published: 28 May, 2010
A pension fund client of Colliers Capital has bought a 51,530-sq ft Morrisons store on the Castleton Retail Park in Dover for £17.26m, reflecting a net initial yield of 5 per cent.
The recently refurbished unit is strategically located immediately to the north of the town centre, and is let to Morrisons for 35 years from April 2009 at a rent equating to £18.00 per sq ft. The vendor, a joint venture between Anderson Harkins and Chartergate, was advised by Stockford Staunton, and the purchaser by Edgerley Simpson Howe.
Jo Duffield at Edgerley Simpson Howe said: “This property represents an excellent investment opportunity in the current market given the strong characteristics it possesses, notably limited foodstore competition within Dover, excellent covenant, the level of rent and substantial term unexpired.”
