UK property investors are finding the regional markets have some of the most attractive deals, with the South West in particular generating significant interest.
According to Mike Oldrieve (pictured above), Head of Investment at Vickery Holman, the reason for the increasing investor interest is ‘value for money’, with an example being the firm’s recent disposal of the Tyre and Exhaust Centre on Billacombe Road Plymstock, which was sold for £910,000 – reflecting a net initial yield of 8.7%.
The prominently located property, fronting Laira Bridge, provides 7,659 sq ft of floor space and is let to Goodyear Tyre at an exclusive rent of £84,000 per annum until December 2018. The unit was sub-let to ETB Worcester two years ago for a sub-rent of £45,000 a year.
Mr Oldrieve continues: “The main issue with the property investment market at the current time is lack of quality stock and investors, particularly from London, are having to look to the regions where there are still opportunities, although these are now far fewer and prices are on the rise.”
He explains that the buyer of the Plymstock automotive property is a well-funded client with a particular interest in the tyre and exhaust market, both from an investment and operational perspective.
“We are always looking for opportunities to expand their network of motorist centres from Bristol to Penzance and all areas in between,” he added.
Posted by Chris Grigorovsky
Photo by Vickery Holman
