Multi-let Retail Premises on West Road, Newcastle sold for Private Clients
We are very pleased to confirm that in Q4 2017, Johnson Tucker successfully sold this multi let retail investment comprising two tenants over ground, first and second floors. The property is situated in a busy location along West Road, a densely populated residential area in Newcastle’s ‘West End’.
Nearby occupiers include The Money Shop, Maxwells DIY, National Tyres, HM Residential / Quadrant Law, Robinsons florists, North East Halal food store, Cosmos Consentric and Premier convenience store among other local and national occupiers
5 West Road is occupied by an optician (t/a Spicker Steen Opticians) and 7/7A West Road is let to Northern Property Network Ltd (t/a Reeds Rains Estate Agency) with further income from an advertisement hoarding on the side of the building. The total current income is £31,311 per annum increasing to £32,061 per annum on 1 July 2018 and £32,561 per annum on 1 July 2019.
Johnson Tucker were instructed to market the property for offers in excess of £400,000 and after a short marketing period had received 4 formal offers to purchase from local investors and property companies. The sale finally completed in December 2017 at a purchase price of £410,000 reflecting a net initial yield of 7.33%.
Investment agent at Johnson Tucker, Daniel Capobasso commented: “We were quite surprised with the amount of interest this investment received but were delighted to sell the property in excess of asking for our client. It clearly demonstrates there remains active demand for property investment, particularly for those lot sizes below £500,000. The West End of Newcastle is a popular location and the long term fixed income from good tenants made this investment particularly attractive among investors.”
Johnson Tucker continue to remain busy and active in the investment market at the start of 2018. If you have a similar investment to sell or have a similar requirement to purchase similar assets, please get in touch with Daniel on 0191 269 7897 or email email@example.com.