This retail parade was purchased in April 2015 for £2.44m, and again was an ‘off market’ acquisition.
Through the vision and foresight of what this investment could be as a development, planning has been granted for a 70 bedroom ‘budget hotel’ scheme with a new A3 retail unit. Using our experience in developments and investments we were able to see the potential in the large service yard and vacant offices in, a prime town centre location.
Further to this and with the aid of our risk-reward analysis, we managed to surrender some of the leases of tenants that had weaker covenants, in order to gain back upper parts and expand the shop units of the stronger covenants. An AFL for the hotel has completed which will bind the operator in for a straight 25 year period.
The development will also be able to occur without effecting all of the already existent income stream. This part of the property was forward funded for a value of £6.6m.