Cooper Rose Completes Sale of Trio of Properties for Savills IM

On behalf of Savills IM, Cooper Rose Real Estate has completed the investment sale of 40 Hepworth Way, Walton-on-Thames for a price of £1m, reflecting a net initial yield of 8%.

The 7,500 sq ft property is let in its entirety to Sofas & Stuff Limited for a term of 10 years from 8 July 2022 at a rent of £85,000 per annum.

This completes the successful sale of three high street properties on behalf of the Charities Property Fund in Walton-on-Thames, Bath and Islington for a total price of around £5.7m.

Contact Giles Cooper

Sale of Manchester’s £43m Corn Exchange completes: From REACT News

Aviva has completed the sale of the Corn Exchange, a prime retail asset in the centre of Manchester, React News can reveal.

An ultra-high net worth individual, based in the Middle East, has completed the acquisition of the prominent building, after first having placed the asset under offer in September last year.

The Corn Exchange was marketed at a guide price of £42.8m, which would give a net initial yield of 6.4%, with pricing understood to be around asking. Cooper Rose acted for the purchaser and KLM Real Estate acted for the vendor.

After Aviva launched the sale in summer 2022, having fully repurposed the prime asset, there were understood to be seven bidders for the asset, with the Middle Eastern buyer emerging as the ultimate buyer.

The building is a Grade II-listed former market hall that was redeveloped by Queensberry Real Estate – backed by Aviva – and reopened in 2015. What had previously been the Triangle, an underused retail and leisure block, became the Corn Exchange and was re-let to a number of restaurant brands as well as a Roomzzz hotel which opened in 2017.

The scheme is 93% let and the 18 leases provide a total of £2.9m in rent. Occupiers include Mowgli, Zizzi, Cosy Club, Pizza Express, Tampopo and Pho.

The Corn Exchange occupies a prime location in central Manchester, opposite the main entrance to the 1.7m sq ft Arndale shopping centre, the Printworks cinema and leisure site, the National Football Museum, Manchester Victoria train station, the Manchester Arena and the Manchester Cathedral.

The sales process for the Corn Exchange began in May 2021, when Aviva announced it would be winding up the Aviva Investors UK Property Fund. Challenges across various sectors led to crashing values, forcing the fund manager to offload many of its prized assets including 20 Soho Square, which was sold for £117m in 2018.

The Corn Exchange was one of the largest remaining assets in the fund, after the sale of Lombardy Shopping Park in Hayes to M7 Real Estate for £47m.

Liverpool Site Acquisition

From React News. Cooper Rose Real Estate acted on the Liverpool acquisition:

Big US investor partners with Packaged Living to build £1bn BTR portfolio

3 Nov 2022 | by Guy Montague-Jones

Joint venture buys first site in Liverpool

• What USAA Real Estate creates joint venture with Packaged Living to build £1bn build-to-rent portfolio

• Why Move builds on USAA Real Estate’s BTR investments in the US and adds new dimension to Packaged Living’s business

• What next Alongside the new joint venture, Packaged Living will continue to buy sites to be forward funded by others

USAA Real Estate has struck up a joint venture partnership with Fiera Real Estate-backed Packaged Living to assemble a £1bn build-to-rent portfolio, React News can reveal.

Best known in Europe for its investments in the logistics sector through John Cutts’ Mountpark, USAA Real Estate has $35bn in assets under management. It is a seasoned investor in the BTR market in the US, but the deal with Packaged Living marks its first foray into the sector in Europe.

The joint venture will seek sites for the development of between six and 10 BTR schemes in leading towns and cities. It is expected that the portfolio will have an end value of about £1bn when built out.

Packaged Living will be responsible for acquisitions and the development of the schemes. It has already bought the first site for the joint venture – an office property in Liverpool that the developer will look to redevelop into a 400-home BTR scheme with an end value of about £150m.

The site, formerly named Ovatus, was due to host the city’s tallest tower.

The plot has detailed consent for a 27-storey residential tower, along with pre-application plans for a 50-storey building, 10 storeys higher than West Tower, the city’s current tallest. The Estate Office was brought in to sell the plot last year by its former owners Prospect Capital and Wilcocks & Wilcocks, as revealed by React News.

For Packaged Living, the deal with USAA Real Estate comes a year after it entered into a joint venture partnership with Aviva Investors in the single-family rental market.

However, this is the company’s first joint venture in the multi-family market where it has up to now partnered with investors, including Invesco Real Estate and CDL Hospitality Trusts, in forward funding deals on individual developments.

Ed Ellerington, founder and managing director of Packaged Living, said: “We’ll continue to buy land on an opportunistic basis, gain planning with existing partners and develop via forward funding with institutional investors. However, our partnership with USAA provides an alternative capital source and route to market via a build to core fund, stabilising schemes and creating a scaled portfolio of multifamily schemes across the UK.

“We see attractive returns created from yield compression between funding and stabilised yields, further enhanced when part of a wider portfolio of assets.”

The size and type of scheme that the new joint venture will look to bring forward will be similar to what Packaged Living has already developed with others. Schemes will typically have between 300 and 500 homes and there will be a strong focus on energy efficiency.

Growth potential

Justin Hildebrandt, executive managing director and head of Europe at USAA Real Estate, said he saw plenty of scope for growth in the UK market.

“The total number of units in the UK is similar to Palm Beach in Florida (73,934) and if you take everything in the pipeline, you get the same level as Portland, Oregon (215,632). The numbers are so low and the opportunity is so great that I feel very confident in the growth potential over the coming decade.”

USAA Real Estate used to be part of USAA, a Texas-based Fortune 500 company that insures and invests on behalf of US military families, but in 2019 a controlling stake was sold to the management team and Paxion Capital. USAA retains a significant minority stake.

Contact Giles Cooper

Prime Retail Store / Showroom Investment - Walton-on-Thames

On behalf of Fund clients, Cooper Rose LLP has launched the sale of this prominent large store investment in Walton-on-Thames.

The property is let on a new lease at a re-based rent.

• Walton-on-Thames – attractive commuter town with an affluent catchment population

• Prominent town centre trading position

• Substantial ground floor retail store/showroom totalling 7,498 sq ft (GIA)

• Let on a new 10 year lease with a break at year 5 at a re-based rent to Sofas & Stuff Ltd

• Tenant provides a lower than average risk of business failure according to Dun & Bradstreet

• Headlease expires in 3008 at a fixed peppercorn rent

• Total current income: £85,000 per annum

• Price: £1,000,000, subject to contract and exclusive of VAT

• Net Initial Yield: 8%

Contact Giles Cooper or Andy Smith of Smith Coley.

Prime Car Dealership Investment - Solihull

Cooper Rose has today launched the sale of a prime car dealership investment in Solihull, let to Rybrook Ltd until 2036 with fixed rental increases:

• Strategic location within one of the most affluent areas of the UK

• Prime car dealership developed in 2011

• Substantial property totalling 14,727 sq ft

• Let to Rybrook Ltd, guaranteed by Rybrook Holdings Ltd, until 27 November 2036

• Five yearly upward only rent reviews fixed to 2.5% per annum compounded

• D&B rating of A-92, indicating ‘Very Low Risk’

• Freehold

• Current Income: £314,949 per annum

• Topped-up Income (to 27 November 2023): £356,335 per annum

• Price: £6,100,000 subject to contract and exclusive of VAT

• Net Initial Yield: Approx. 5.5% based on the 2023 income

• The fixed increases within the leases will provide the following yield profile:

  • 2023 £356,335 pa 5.5%

  • 2028 £403,161 pa 6.2%

  • 2033 £456,140 pa 7.0%

Contact Giles Cooper or Ben Rose

Move to 33 Broadwick Street, Soho, London W1F 0DQ

After 10 years at 16 Kingly Street, Soho, Cooper Rose LLP has moved offices nearby to 33 Broadwick Street, Soho, London W1F 0DQ. Our telephone numbers are unchanged.

Contact Ben Rose or Giles Cooper

Debenhams, Southampton - Landlord advised by Cooper Rose

From the Southern Daily Echo:

Tower at Debenhams site in Southampton 'will inject 1,000 people' into city centre

THE FORMER Debenhams store in Southampton will be knocked down and replaced with a new 17-storey apartment block.

There will be 598 flats, nine townhouses and a 108-space car park as well as a public plaza.

The scheme was given the green light during a city council Planning and Rights of Way Panel meeting on Tuesday.

Developer Shaun Adams, the CEO and owner of National Regional Property Group, architect Stephen Hodder, and agent Gareth Hooper, CEO of DPP Planning, all attended.

The development will comprise townhouses, and one, two and three-bedroom apartments, set in three separate blocks, surrounding a central plaza.

Block C is the building that will rise 17-storeys above the city centre, offering views of the Central Parks.

The new development will be the sixth tallest in Southampton.

Mr Adams, the developer, said that the apartment block will ‘inject around 1,000 new residents into the city centre’.

He says it will help the ‘city centre to bounce back’ and will ‘create a critical mass of people – making a meaningful change in the city’.

Mr Adams added: “I have a track record for successful delivery of these projects in Southampton.

"I am one of the few local developers that has successfully delivered affordable housing in the centre of Southampton.

“This is a scheme that is very important to us. We worked incredibly hard with the authority right across the board to try and deliver the best possible scheme.

“It’s an exciting scheme in these very challenging times.

“I will deliver hundreds of construction jobs, training and enterprise, which I believe is important for Southampton city centre.”

The panel gave the go-ahead to the development in principle, but delegated the final approval to the council’s head of planning.

It has stipulated several conditions that must be met before the head of planning agrees it, including numbers of cycle bays and electric car charging points.

Bath - 4 Union Street

Cooper Rose and Smith Coley have been instructed to market the freehold of this property, a superb opportunity to acquire a prime retail investment in Bath at a historically low price:

• Bath - one of the most attractive cities in the UK

• Prime trading position on the western side of the pedestrianised Union Street

• Substantial retail property totalling 2,399 sq ft

• Let on a new 10 year lease (break at year 5) at a re-based rent to Mr Simms Bath Ltd

• Total current income: £65,000 per annum

• Future potential for the redevelopment of the upper floors (STPP)

• Price: £1,000,000, subject to contract and exclusive of VAT

• Net Initial Yield: 6.15%

Contact Giles Cooper or Andy Smith

Retail Investment Requirement

Sainsbury's Wakefield - React News

From React News:

Investors look to add £47m Sainsbury’s to basket

24 May 2022 | by Charlie Schouten

Store in Wakefield is one of supermarket chain’s better-performing branches

• What A supermarket let to Sainsbury’s in Wakefield has been put up for sale

• Why Investor appetite remains strong for supermarket assets in post-pandemic world

• What next Offers of £47m invited

Activity in the supermarket investment market shows no signs of abating with a Sainsbury’s store in Wakefield, West Yorkshire, now on the market for £47m, React News can reveal.

Cooper Rose has been instructed to find a buyer for the purpose-built food store, which totals nearly 117,000 sq ft of retail space. Sainsbury’s has a lease in place until May 2036, and the store generates more than £2.5m per annum in rent, which equates to £21.50/sq ft.

Cooper Rose is selling the supermarket on behalf of a private investor, and a sale at £47m would represent a net initial yield of 5%. The store is being sold on a long-leasehold basis.

The supermarket is linked to the 500,000 sq ft Trinity Walk shopping centre, where Next, H&M, New Look, JD Sports and River Island are among the tenants. The Sainsbury’s unit is in separate ownership to the shopping centre.

The store is let to Sainsbury’s until May 2036

At £47m, the sale is one of the largest active in Yorkshire at present, and is likely to attract strong interest given the number of investors ploughing funds into supermarkets over the past two to three years.

Sales in Yorkshire and the North East in the last six months include LXi’s acquisition of a reconfigured supermarket in Middlesbrough for nearly £59m. The store was originally due to be let to Sainsbury’s but has since been reconfigured to house other tenants including B&M.

Iceland - 5-7 Walpole Road, Gosport - LinkedIn

From LinkedIn

Sainsbury’s, Wakefield - Prime Foodstore Investment

On behalf of private clients, Cooper Rose has launched the sale of a prime foodstore investment in Wakefield, West Yorkshire, the salient points of which are as follows:

• Located in the Cathedral City of Wakefield, one of the principal retail and commercial centres in Yorkshire

• Let to the excellent covenant of Sainsbury's Supermarkets Limited until 22 May 2036 (14 years unexpired)

• Purpose built foodstore extending to 116,763 sq ft

• The rent is subject to 5 yearly rent reviews to Open Market Value with the next review on 23 May 2026

• 999 year long leasehold from 13 August 2014 at a peppercorn

• The property is the dominant foodstore within Wakefield city centre

Total current income: £2,510,414.50 per annum

Price: £47,000,000 subject to contract and exclusive of VAT

Net Initial Yield: 5.00%

Contact Ben Rose or Sammy Whittaker

Cobham - 16 High Street

Cooper Rose LLP has been instructed to market this prime retail investment in Cobham, Surrey.

• Cobham, Surrey - one of the most desirable towns in the UK with an affluent catchment population

• Located close to the junction of the A3 and M25 Motorway, 17 miles south-west of Central London

• Prime trading position on the western side of the attractive High Street

• Substantial retail property totalling 4,507 sq ft

• Let on a new 15 year lease (no breaks) at a re-based rent to Pearl Chemist Limited

• Long term potential for full or partial redevelopment (STPP)

Total current income: £83,000 per annum
Price:£1,500,000, subject to contract and exclusive of VAT
Net Initial Yield: 5.22%

Contact Giles Cooper or Andy Smith of Smith Coley

Islington N1 - 54/55 Chapel Market

On behalf of Savills Investment Management, Cooper Rose has sold the freehold interest in 54/55 Chapel Market, Islington for a price of £3.765m, reflecting a net initial yield of 4.79%.

The investment received a strong level of interest with over ten offers received for the property.

Contact Giles Cooper or our joint agents Fawcett Mead

Sainsburys, Bishop Auckland

On behalf of private clients, Cooper Rose has sold the freehold interest in the Sainsburys in Bishop Auckland for an undisclosed price.

The property comprises a purpose built food store totalling 96,702 sq ft.

The property is let to Sainsbury’s Supermarkets Ltd for a term of 25 years from 29 September 2010 at a passing rent of £2,075,043 pa.

The rent is subject to upwards only reviews on a 5-yearly basis, with the next review being on 29 September 2025.

Contact Ben Rose or our joint agents Morgan Williams

Islington N1 - 54/55 Chapel Market

Cooper Rose LLP has launched the sale of a prime retail investment with development potential in Islington, London N1,

• Islington, London N1 - one of the capital’s most affluent boroughs and a vibrant residential, business, retail and leisure area.

• Located close to The City of London and the West End, benefitting from central London’s comprehensive transport infrastructure.

• Situated on the southern side of the pedestrianised Chapel Market, one of Islington’s busiest retailing thoroughfares, close to Angel Underground Station.

• Two substantial retail units totalling 12,195 sq ft.

• Let at re-based rents to the undoubtable covenants of JD Sports Fashion plc & Superdrug Stores plc.

• Potential for full or partial redevelopment (STPP).
  
  Total current income: £192,000 per annum
  Price: £3,150,000 (subject to contract and exclusive of VAT)
  Net Initial Yield: 5.73%

Contact Giles Cooper or our joint agents, Fawcett Mead

Sainsbury’s, 86 & 90-92 Kilburn High Road, London NW6

On behalf of private clients, Cooper Rose LLP has acquired the freehold interest in the Sainsbury’s on Kilburn High Road, London.

The 52,614 sq ft store is let to Sainsbury's until 2043 at a current rent of £992,065 per annum, subject to 5 yearly open market rent reviews

Contact Ben Rose or Giles Cooper

The Henge Retail Park, Glenrothes, Fife

On behalf of institutional clients, Cooper Rose has acquired the heritable interest in The Henge Retail Park, Glenrothes, Scotland.

The property comprises a food convenience led scheme totalling 33,167 sq ft and is anchored by a stand-alone Marks and Spencer Food Hall.

Other tenants include Iceland’s Food Warehouse, Farmfoods and Indigo Sun.

The current passing rent is £525,500 per annum and the WAULT to expiry is approximately 12 years.

Contact Giles Cooper

Sainsbury's, St Helen Auckland, Bishop Auckland

Cooper Rose has launched the sale of Sainsbury’s in Bishop Auckland, a prime foodstore investment let to the excellent covenant of Sainsbury’s Supermarkets Ltd for a further 14.5 years.

The property is located in the historic market town of Bishop Auckland in County Durham, serving a catchment of over 100,000 people within a 15-minute drivetime.

Occupying a highly prominent position on the A688, adjacent to the successful and fully let Bishop Auckland Retail Park, the purpose-built foodstore was developed in 2010 and comprises a total GIA of 96,702 sq ft, together with a 6-pump Petrol Filling Station and 612 car parking spaces.

The store incorporates an Argos concession and operates dot-com delivery service.

The freehold site extends to approximately 8.6 acres.

The occupational lease expires on 28 September 2035 at a passing rent of £2,075,043 pa (reflecting an affordable rate of £19.50 psf), subject to 5-yearly OMV reviews.

We are instructed to seek offers in excess of £37,000,000 (Thirty Seven Million Pounds) subject to contract and exclusive of VAT, for our client’s freehold interest. A purchase at this level would show an attractive Net Initial Yield of 5.25% allowing for standard purchaser’s costs of 6.80%.

Contact Ben Rose, Sammy Whittaker or our joint agents Morgan Williams

School Brow Retail Park, Warrington

On behalf of AEW UK Core Property Fund, Cooper Rose has sold School Brow Retail Park in Warrington for a price of around £2,000,000.

The property is mainly let to Farmfoods Ltd until 2035 at a rent of £95,000 per annum.

Contact Giles Cooper