Freehold Investment Opportunity
Strettons were instructed jointly with HRH Retail to market this prime freehold investment in the historic city of Canterbury which is a popular university and tourist destination.
Our Asset Management Team advised our client ahead of a sale to re-gear the lease which took the fairly short term remaining on the lease of 4 years at the time, to a term of 18 years without a break option for the tenant. This term of 18 years is unusual and allowed a premium price to be obtained.
The property provides a well configured double fronted restaurant with approximately 160 covers along with ancillary accommodation for storage and staff situated at second-floor level. An extensive private garden to the rear also provides an additional 50 covers.
The entire property was let to Azzurri Restaurants Limited on a 25-year full repairing and insuring lease from 25th June 1995, expiring 24th June 2020, with a current passing rent of £110,250 per annum.
There is a new 15-year reversionary lease in place from expiry with 5 yearly upward only rent reviews, giving over 18 years term certain.
Offers in excess of £2,075,000 were sought, and a sale price of £2,440,000 was achieved, representing a net initial yield of 4.25%.