CGIS No. 3 has completed on the acquisition of Clough Road Retail Park, Kingston upon Hull
3 July 2017
The park is Freehold, has Bulky Goods with exceptions consent and ex- tends to 88,498 sq ft. The main property has been re-configured to provide 4 smaller units from 3 large units and all fascias have been refurbished. There is new landscaping, signage and lighting to the car park. The units have been re-let on new 10 & 15 year leases to Go Outdoors, Curry’s/PC World, Halfords and Office Depot. There is a stand-alone unit let to Smyth’s Toys for 20 years which was refurbished in 2012. In addition, the park features a brand new drive-thru let to Costa Coffee for 15 years.
Total contracted income equates to £848,078 per annum reflecting rents between £5.84 and £25.73 per square foot whilst the weighted average unexpired lease term is 10 years to break and 11.5 years to expiry.
There are asset management opportunities for re-gearing and taking out break clauses in the Office Depot and Smyth’s units, together with the potential to sell off the stand-alone Smyth’s unit to de-gear the investment. Alternatively, there is scope to extend the ownership by acquiring an adjoining site for redevelopment as a further drive-thru or restaurant unit to complement the Costa offering.
The city of Kingston upon Hull is the unitary authority for East Riding of Yorkshire. The city has a primary catchment of 556,000 people and is the 2017 UK Capital of Culture. Approximately 850,000 people live within a 45 minute drive of Hull’s city centre, with a shopping population of 341,000, over 200,000 of that population are classed as ABC1s residing in some of the UK’s wealthiest wards and commanding a spend value of £3.7bn per annum.