An award-winning commercial agent has kicked off the New Year by securing a Cardiff investment deal worth in excess of £2 million.
Acting on behalf of a local syndicate, Cardiff-based EJ Hales purchased Penarth Road Retail/Trade Park for just under £2.1 million.
With a current rent roll of £189,000 per annum, this equates to an initial net yield of 8%.
The investment was purchased due to the strong tenant listing which includes Bathstore, Crown Paints, HCL, bike retailer Tredz and mobility stair lift specialists Able World.
Dan Griffiths, investment partner at EJ Hales, said:
“We are delighted to have secured Penarth Road Retail/Trade Park on behalf of our client. The building is fully let and we have been able to regear the lease with Bathstore, so the investment provides excellent potential for rental growth going forward.
“Furthermore, with limited retail warehousing within Penarth itself, it was felt that the location could draw on the affluent Penarth demographic.
“With a large car park at the rear, direct access off the roundabout, and high end retailers such as Porsche close by, it was felt that the property provided excellent capital growth prospects long-term – whilst providing strong income return of 8% in the meantime.
“An additional benefit is that the property has Open A1 retail and foodstore consent having previously operated as a Kwik Save store, which again provides excellent potential for adding value to long term growth. We think there will be a great future at the premises.”
EJ Hales has been at the forefront of the South Wales commercial property market for over 80 years. The practice specialises in retail and leisure property, both in town centre and out of centre locations and advises on some of the largest developments in South Wales.
Clients include Tesco, Next, Argos, Subway, Specsavers, UBS, M & G Real Estate and Aberdeen Asset management & Mansford.