The freehold for Chichester department store House of Fraser has been bought for £13.4m.
Purchaser the Charities Property Fund (the Fund), managed by Savills Investment Management, announced the news today, Monday, April 24.
It’s director called it an ‘attractive building’ which ‘offers a number of opportunities for alternative uses in the future’.
It follows the Fund’s recent sale of two retail investments in Chichester – it sold the freeholds of WH Smith for £3.82m and Oasis for £2.55m, both in January and for a net initial yield of 4 per cent and 3.69 per cent respectively, Savills said.
Harry de Ferry Foster, Fund director, said: “Having recently sold two assets in Chichester at a combined yield of 3.88%, a record low, we welcomed the opportunity to immediately buy back in at a yield 35 per cent higher, with the benefit of a much longer lease and the added benefit of a capital value per sq ft that was 75 per cent cheaper, reflecting the very low rent being paid by House of Fraser.
“This asset also has extensive retail frontage and occupies an excellent position opposite the Cathedral.
“It is a very attractive building and offers a number of opportunities for alternative uses in the future.”
The property holds the only department store in Chichester and the Fund said it ‘is situated in a prime trading position in the city centre’.
In a statement the Fund said: “The lease has an unexpired term of in excess of 22 years with five-yearly rent reviews. “The price reflects a net initial yield of 5.26 per cent and a capital value of approximately £193 per sqft.”
The store has recently been refurbished by House of Fraser and in total is 69,313 sqft in size.
House of Fraser has been approached for comment.
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