Harrogate is an affluent and highly desirable spa town in North Yorkshire.
The town provides one of the UK’s most attractive retail catchments, benefiting from relatively high levels of personal disposable income and a very limited supply of retail warehouse accommodation.
Harrogate has demonstrated provable rental growth over recent years.
A modern retail warehouse development providing 56,149 sq ft occupied by Aldi, B&Q and Pets at Home – 5A1 covenants.
Very attractive WAULT of approximately 15.1 years (13.6 years including Aldi’s 2031 break option).
Low average rent of £16.34 per sq ft with provable reversions on the B&Q and Pets at Home units.
Aldi benefits from 5 yearly RPI linked rent reviews between 1% and 3% pa.
A very rare opportunity to acquire a dominant out of town retail investment in a very strong town with the benefit of long, unexpired lease terms.
We are instructed to seek offers in excess of £16,200,000, subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.31% (assuming purchaser’s costs at 6.74%).
A purchase at this price would give the following yield profile:
Date Event Running Yield
Aug 2018 B&Q rent review to ERV 5.85%
Jan 2019 Pets at Home rent review to ERV 5.99%
Jun 2021 Aldi RPI linked rent review assuming 3% pa 6.24%