£29 million secures Castle Portfolio for API
07 May 2008
The portfolio has properties in four locations across England
The Castle portfolio comprising properties in four locations has been purchased by API from F&C for £29 million giving a net initial yield of 6.35% and an equivalent yield of 6.71%.
In Kings Lynn, Norfolk, B&Q and KFC occupy a total of 49,750 ft², held on leases expiring late in 2027, producing £711,450 pax. B&Q has fixed uplifts after the fifth and tenth years based on 2.5% pa and then to open market value. KFC’s reviews are five yearly.
Homebase has a 20 year lease from 3rd July 2006 on 25,000 ft² in Bishop Auckland, County Durham. The passing rent is £300,000 and will be subject to review five yearly.
The other Homebase unit is in Whitchurch, Shropshire and provides 26,294 ft². The building is held on a 25 year lease from November 2006 at a current rent of £395,000 pax reviewable five yearly. There is a tenant option to determine the lease in November 2026.
In Huddersfield DSG Retail, trading as PC World, lease a 30,000 ft² unit at a rent of £540,000 pax.
The 20 year lease runs from September 2004 and is subject five yearly rent reviews. There is a tenant break in 2019.
King Sturge acted for API and Savills advised F&C.
