GCW’s advice to Topland on the 27,000 sq ft Morrisons supermarket was given over two years up to the fixed date of the rent review followed by the investment sale 18 months later. It worked with Topland on rent review tactics and successfully achieved a strong review settlement with an increase in rent to £475,000 pa payable by the occupier.
Once the rent review settlement had been achieved, GCW advised on how best to dispose of the asset as it was acknowledged that future rental growth might be limited. It was aware that a more prominent supermarket site nearby was likely to impact on the value and future performance of the store. GCW marketed the property as an investment and Topland subsequently sold the supermarket for £8.26 million at a yield of 5.3%.
GCW’s understanding of the performance of the food store market and its assessment of future movements was critical to the decision-making. At the time of the valuation date, at the end of December 2013, the market was softening and this led to the decision to advise Topland to sell the investment."