Retail block purchased in Baker Street
Cluttons advised a fund management client on the freehold purchase of a property on Baker Street, London for £5.65m, reflecting a net initial yield of 4.9%.
The period property benefits from a corner position and comprises four retail units, all of which are fully let and command a total passing rent of £292,000 pa. The residential upper parts have been sold off on long lease.
The Baker Street building occupies a prime position in the Marylebone district of London’s West End and, although not listed, lies within The Portman Estate Conservation Area.
The purchase reflects a sound retail investment for the fund, in line with strategy and aiding with the diversification of assets in the portfolio. The property is located in a vibrant part of town with good footfall and is benefitting from significant investment in new mixed use developments in the area undertaken recently. The West End retail market is buoyant and there is good scope for rental growth here from a relatively modest rental base of £125 Zone A.