Fisher Hargreaves Proctor acting on behalf of a private investors have acquired a 250 year lease at a peppercorn rent of the Starbucks Coffee unit overlooking the Market Square in Nottingham.
The property was owned by Braemar Estates and sold on their behalf by Christopher Dee.
David Hargreaves, who negotiated the acquisition, confirmed that Starbucks pay a rent of £170,000 per annum and that a price of £2.4 million was paid, reflecting a yield of 6.7%.
David Hargreaves said: “Our clients have acquired a 15 year income stream from Starbucks in an excellent location overlooking the Market Square. With the £7 million refurbishment of the Square 2 years ago and the Tram system, we believe this is a much improved location. The property benefits from a large return frontage to Wheeler Gate and we believe will always find tenant interest.
David Hargreaves confirmed that the investment market for well let retail stock is improving, with a number of cash buyers starting to evolve. Hargreaves confirmed that his clients had serious competition from another cash buyer in securing this investment.
Fisher Hargreaves Proctor, who introduced and acquired the investment, have now been retained to manage it, whilst FHP Living have been instructed to let and manage the residential apartments above.