Leicester-based Midlands commercial property agents Phillips Sutton Associates (Phillips Sutton) has acquired a retail warehouse investment in Leicester in an off-market transaction that was completed within a month.
The 19,000 sq ft retail warehouse, located on Churchgate in Leicester, is let to Matalan for a further eight years. A&J Mucklow acquired the investment from CBRE Global Investors for £2.675m.
Sam Sutton of Phillips Sutton said: “This is a great inward investment story for Leicester. The city is continually proving that it is an attractive place for investors because of its transport links with the rest of the UK. In this instance, the location of Matalan and its proximity to Highcross/Vaughan Way/Ring Road makes it a great fit for our clients and their tenant, with the added bonus that the unit has potential alternative uses in the future.”
Mark Vernon of A&J Mucklow added: “We bought the property as it provides eight years of secure income with potential for rental growth and it also has a strong residual position because of its prominent location within the ring road and close to the main retail centre.
“Private and public sector investment in Leicester city centre has much improved its appeal and hopefully will continue to do so strengthening its position relative to other major centres. The commercial property market in the East Midlands is generally strong mirroring the wider market dynamics in the UK.”