Bradford’s retail renaissance is continuing with a prominent retail building being sold for £3.5m in an investment deal.
26 Market Street Bradford has been purchased by Delta Properties from First Investment Real Estate Management, acting as LPA Receivers.
The deal for the 26,708 sq ft retail investment was brokered by Rob Hepworth from the Sheffield office of Knight Frank for the vendor in just over three months from instruction to completion, and sees Delta Properties add to its existing presence in Yorkshire where it sees value and growth.
Tenants at 26 Market Street include Boots The Chemist, Caffé Nero, Nationwide, KFC, Betfred and The Cash Store, while the property has three vacant floors above – offering potential to redevelop to office or residential use dependent on planning approval.
Rob Hepworth said:
“Knight Frank marketed the property nationwide and, with an appetite returning for regional investment deals, were able to secure a fantastic result for the client.
“Market Street, Bank Street, Darley Street, Kirkgate, Ivegate, Hustlergate and Broadway are all important retail pitches, with key retailers such as Marks & Spencer, Topshop, Burtons, Superdrug, Waterstones, Caffé Nero, JD Sports and Primark occupying units.
“This is an exciting time for retail in Bradford and good news for the city’s shoppers.
“The most significant retail scheme for Bradford city centre is the £275 million redevelopment by Westfield of the Central site, bounded by Broadway, Forster Square, Charles Street and Hall Ings.
“This has been forward purchased from Westfield by Meyer Bergman.
“Debenhams, Marks & Spencers , Topshop, River Island, Ernest Jones and Sainsbury’s have all signed pre-lets for the scheme.
“Construction is underway and started on site in early 2014. Delivery is expected in summer 2015.”
The Market Street sale completed at £3.5m after a competitive bidding situation providing a 9.50 per cent Net Initial Yield.
Robert Roddy from First Investment Real Estate Management said:
“Knight Frank marketed the property on our behalf and provided a thorough, professional and targeted approach, securing a price in excess of quoting.”
Ronen Saban, CEO at Delta Properties said:
“As vendor’s agents, Knight Frank proved to be invaluable in getting the deal over the line to the satisfaction of all parties involved.”
Commenting on the current market conditions in the UK, Rob added:
“Building on the momentum generated at the start of 2014, the UK retail investment market continues to strengthen as we progress through the year.
“Overall demand is still rising, particularly among institutional and foreign investors.
“The lack of stock across the prime market has led to a greater willingness among buyers to move up the risk curve, investing in secondary stock or stock in regional locations.
“This strong sentiment, coupled with the lack of stock, has inevitably resulted in a hardening of yields both in London and the South East and into the regional marketplace.
“Whilst buying opportunities for prime stock are likely to remain in extremely short supply, regional stock will increasingly come into play and yields are expected to harden further.”