Local Retail Fund has ended the year with the purchase of the Old Mill Square Shopping Centre in Storrington, West Sussex, for £5.21m, reflecting a net initial yield of 6.8%.
The purpose-built retail precinct is anchored by a Waitrose supermarket and comprises 13 retail units and 10 first floor offices totalling 33,340 sq ft. Over half (57%) of the income is secured against the covenants of Waitrose, Barclays Bank and a Costa Coffee franchise.
There is potential to increase income by letting vacant units and reconfiguring floorspace, including a potential extension of the Waitrose store and conversion of the first floor offices to residential flats.
Storrington, an affluent village north of Worthing, is located close to the A238, while the centre is adjacent a car park and bus station.
Local Retail Fund was advised by Waypoint; the vendor, a private property company, was represented by Vail Williams.