HARRIS LAMB APPOINTED AS SOLE AGENT FOR FREEHOLD MIDLANDS RETAIL INVESTMENT OPPORTUNITY

Retail agents at Harris Lamb have been instructed on a prime Worcestershire investment opportunity reflecting a net initial yield of over seven per cent.

The property, 1 High Street, Kidderminster, is predominantly let to the British Heart Foundation on a five-year lease, with the remaining floor space being operated as a restaurant and takeaway.

Offers in excess of £1,540,000 are being sought for the freehold, which presently generates a passing rent of £117,000 per annum.

Harris Lamb’s Head of Retail David Walton said: “This opportunity occupies a prime location on the corner of the High Street and Vicar Street.

“A former department store, the property is arranged over three floors, 15,558 sq ft of which is let to BHF further to a recent lease renewal at the site. With the lease set to expire in October 2030, four years and 11 months of the term are currently unexpired. The remaining 2,034 sq ft is let to Sohal Foods, which trades as Flame and Ice, until 2031.

“The property has a low base rent of £4.44 per sq ft overall offering scope for reversionary increase, and the asking price reflects a net initial yield of 7.1% after purchasers’ costs of 6.5%. We believe that the opportunity will attract significant interest from investors keen to expand their retail portfolio with a prime Midlands property occupied by a strong covenant with clear future potential,” he added.

The property itself is located in a prime retail site fronting the main thoroughfare to Kidderminster’s central shopping area, close to the town’s main car- parks and a mile away from the town’s railway station, which provides regular services to Birmingham and London.

Nearby occupiers include Argos, EE, Halifax, and Nationwide. The new Weavers Wharf development, which includes M&S Food, Marks & Spencer and Sports Direct is located close by.

Enquiries around the opportunity should be directed to David at david.walton@harrislamb.com.