Coventry shopping centre to go under the hammer
A 200,000 sq ft Coventry shopping centre which was anchored by Debenhams will be offered in Allsop’s next commercial sale with a guide price of £5.5m-plus.
The guide reflects a yield of more than 40%. However, this includes a forecast turnover-based rent of more than £350,000 for 2020 from Debenhams, which went into administration last year. Other tenants include Marks & Spencer and WHSmith.
A large number of leases revert this year or in the next few years.
A 200,000 sq ft Coventry shopping centre which was anchored by Debenhams will be offered in Allsop’s next commercial sale with a guide price of £5.5m-plus.
The guide reflects a yield of more than 40%. However, this includes a forecast turnover-based rent of more than £350,000 for 2020 from Debenhams, which went into administration last year. Other tenants include Marks & Spencer and WHSmith.
A large number of leases revert this year or in the next few years.
The West Orchards shopping centre (lot 19) has been put up for sale by UK REIT RDI, which has been steadily reducing its retail exposure.
The centre is held on two 99-year leases from Coventry City Council with 67 years remaining, or 118 years if extended. It was developed by Modus, which went bust in the last recession.
Last November, RDI completed the sale of its UK retail parks portfolio to M7 for £156.9m. This reduced its retail exposure to 11.8%, down from 28.4% in February. The company said funds from the transaction would be used to pay down a circa £100m revolving credit facility, with the remainder held in cash to “enhance cash and facility headroom”.
Allsop has listed 65 lots for the 3 February sale. They also include a Coventry office investment let to law firm Keoghs (lot 14). It is guided at £2.8m-£3m, reflecting a yield of 8.48%.
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