Gregory Property in £4.8m sale of central retail warehouse site

Gregory Property Group has sold a retail warehouse investment leased to Homebase for £4.8m.

The Leeds-based firm sold the 25,000 sq ft property at Ashfield Retail Centre in the centre of Burnley to an unnamed retail fund, reflecting an initial net yield of 6.69 per cent.

The building is leased to Homebase at a rent of 337,500 per annum with over 15 years unexpired until May 2029.

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Richard Tovey, director at Gregory Property Group, said: “We purchased the former car showroom site in 2005 when this area of Burnley was starting to see major regeneration and undertook the single unit development in late 2008.

“The location is now an established retail area with many of the major food and non-food operators close by.

“Also, the decision by Burnley College to locate on the adjoining site has further strengthened this part of the town.

“With no other DIY stores in Burnley, the investment will be an attractive asset for the pur-chaser.”

Graham Foxton, associate director at BNP Paribas Real Estate, who advised Gregory, said: “This is a clear indication that investor appetite for well-let secure investments has definitely improved during 2013, which created a competitive marketplace.

“The investment presented an opportunity to acquire a good quality asset with a relatively long unexpired term, which is well placed in the DIY retail warehouse sector.”

The purchaser was advised by Adam Ramshaw of Lambert Smith Hampton in Birmingham.

Gregory Property Group is behind the £40m Broad Street Plaza scheme in Halifax, which includes Vue Cinema, Pure Gym, Nando’s, TGI Friday’s and Pizza Express.

In October, it submitted a planning application through its subsidiary Gregory Projects to transform a redundant site on Regent Street at a major gateway to Leeds city centre. The application for a mixed-use development on the former Reg Vardy Renault dealership site includes a 2,043 sq m foodstore and 2,044 sq m of leisure facilities.

It was also behind the Foss Islands Retail Park in York, anchored by Morrisons.