Grantham mall returns to auction with less than half 2017 income

A shopping centre which sold under the hammer for £2.7m in 2017 as a high-yielding town centre investment is due to be offered again – but with less than half the rental income. The George Centre in Grantham, Lincolnshire (pictured), will be offered in SDL Auctions’ live-streamed national sale on 26 November with a £950,000 guide and a strong emphasis on redevelopment potential. Income from the 58,000 sq ft centre was £367,000 in 2017, when it was almost fully let. It was marketed by Allsop with an ERV of £488,000 and sold under the hammer at a net yield of 12.77%. It now produces £142,000 from around 50% occupancy. The part Grade II listed building comprises 40 retail units, six office suites and a storage unit, and has a car park with 41 spaces. SDL senior valuer Carl Finch said: “Clearly, there is scope to increase the rental income by letting the vacant units, but this property offers so much more potential on the first- and second-floor spaces, which could be converted into residential accommodation if the planning permissions were obtained.” To send feedback, e-mail julia.cahill@egi.co.uk or tweet @EGJuliaC or @estatesgazette