18 April 2011
Acting on behalf of LPA Receivers, Capita Symonds’ real estate
division has completed the £5.3m sale of the leasehold of three
retail warehouse premises at Gillingham Retail Park, Kent, to the
BlackRock UK Property Fund.
Gillingham Retail Park is located on the south
side of the A2 leading into London, close to large Tesco and
B&Q stores. The retail warehouse units combine to offer
approximately 45,000 sq ft, together with some 80 car parking
spaces. One unit is occupied by Magnet Kitchens, with the remaining
two formerly occupied by Allied Carpets and MFI. The property is
held on the residue of a long leasehold interest with just over 90
years unexpired.
When the receivers were appointed in June
2009, MFI had been placed into administrative receivership and only
in occupation by way of a license for only a short period. Shortly
afterwards, Allied Carpets also went into receivership, resulting
in a property with two ‘tired’ and vacant showrooms that was
receiving just £160,000 in annual rental income from the remaining
tenant – Magnet Kitchens.
Capita Symonds had instigated a major
redevelopment of the site when an unsolicited and off-market offer
was received from BlackRock to sell the long leasehold interest.
Negotiations were completed to sell the leasehold interest for
£5.3m, representing a 2.85% net initial yield, subject to a
significant reversion, when the vacant properties are refurbished
and re-let.
The LPA Receivers were represented by Capita
Symonds while BlackRock was unrepresented.
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