Cluttons secures adjoining retail investments in Kingston-Upon-Thames
Back in April 2010, Cluttons bought the freehold interest on behalf of a fund in 7-9 Church Street let to Karen Millen for £2.606m, reflecting a net initial yield of 4.8%. Later, in August 2011 Cluttons then secured the purchase of the freehold interest in the neighbouring building, 3-5 Church Street for the same client’s fund for £2.96m, reflecting a net initial yield of 4.9%.
Both properties comprise well-configured retail units on the ground floor, with additional accommodation in the basement and upper floors. One unit is let to O2 for a further eight years, producing a current income of £146,200 per annum and the other is let to Karen Millen for another six years at £128,000 per annum.
The adjoining buildings are situated in the heart of the town centre on the west side of Church Street, close to the main entrance to the Bentall Shopping Centre on Clarence Street and the attractive Market Place area. The Royal Borough of Kingston-upon-Thames is a historic market town with one of the most affluent catchment populations within the UK, creating per capita retail spending levels significantly above the UK average.
The purchases support the fund’s current investment strategy to generate both rental and capital value growth and provide an attractive contiguous block in the heart of Kingston.