GCW’s expertise and knowledge was essential in under-writing the 4% initial yield required to secure the deal. The portfolio was made up of four primary high street properties in the affluent towns of Guildford, Cheltenham and Cambridge.
GCW director Fiona Nichols gave occupational advice on the investments in Cambridge and Guildford, analysing current rents and writing business plans for each of the assets.
“The transaction was very keenly priced because of the quality of the assets and they are the very best of the best. At those levels of yields, in order to achieve the required returns, rental growth is essential and in order to be comfortable that it is achievable, it is necessary to get underneath the skin of the assets. GCW’s occupational knowledge means we can provide that intelligence and offer an unbiased perspective” says Nichols.
With a total passing rent of £1.53 million pa, the portfolio is comprised of a property on Market Hill, Cambridge let to Gap, a property on The Promenade, Cheltenham let to Hobbs and Jack Wills and two separate properties in Guildford, Waterstone’s on the High Street and part of the Marks & Spencer’s store fronting on to North Street.
JLL acted for Legal & General on the sale and Fawcett Mead acted jointly with GCW for CBRE Global Investors on the purchase.