Alton is a town in Hampshire, 50 miles from Central London.
Affluent population with 44.6% of the 15 minute drive time catchment within the top Acorn Group ‘Affluent Achievers’.
The subject property provides the only retail warehousing in the town and surrounding area.
A modern retail warehouse development providing 32,620 sq ft GIA.
Let to Aldi, Wickes and Pets at Home – all ‘5A1’ strength covenants.
Very attractive WAULT of approximately 12.0 years (10.9 years including the Pets at Home 2025 tenant break option).
Aldi benefits from 5 yearly RPI linked rent reviews between 1.5% and 2.5% per annum compounded.
Significant RPI related reversion in the Aldi rent in 2019 and potential reversion in the Wickes and Pets at Home rents in 2019 and 2020 respectively.
Unrestricted A1 planning consent.
Potential for the construction of an additional unit.
The adjoining site is likely to be developed for A1, A3 and/or leisure use.
We are instructed to seek offers in excess of £10,300,000 (Ten Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.00% (assuming purchaser’s costs at 6.70%).
An acquisition at the quoting price would see the yield increase to 5.22% in May 2019 following Aldi’s RPI linked rent review.
Following rental uplifts on the Wickes and Pets at Home open market value rent reviews, to our opinion of ERV, the running yield further increases to 5.37%.