Bournemouth supermarket-led investment hits the market
A supermarket-anchored mixed-use property in Bournemouth has been placed on the market with a price tag of £11.5m.
Located at 1-3 The Square and 4-28 Richmond Hill, the property is let to tenants including Tesco, The Ivy, Stonegate Pubs, and the Azzurri Group, which make up 92% of the rental income.
The asset has weighted average unexpired lease term of 10.76 years to expiry and 10.3 years to break. Tesco opted not to exercise a break clause in 2020 and reversionary leases have been agreed with Slug and Lettuce and Zizzi. A new lease has also been completed with The Ivy for an unbroken term of 25 years, with five-yearly RPI-indexed rent reviews.
In addition to the retail and leisure aspect, the property also includes two floors of residential accommodation.
The asking price of £11.5m reflects a net initial yield of 8.4% increasing to 9.2% in October, and a capital value of £205 per sq ft.
Jackson Criss has been appointed to find a suitable buyer.