Scottish independent commercial property firm Ryden has announced the purchase of a retail unit on Arbroath High Street on behalf of a private London-based investor.
Purchased for £432,500, ‘Heritable Interest’ has a net initial yield of 8.6% and is located at 183-187 High Street in the large coastal town of Arbroath.
Commenting on the deal, Derek Archer, Investment Associate at Ryden, said: “Despite the current challenges within the retail sector, selective opportunities are throwing up excellent value.
“With 9.5 years to a 5A1 covenant, similar income streams in other sectors are not generating such attractive returns.”
The large retail unit extends nearly 3,000 sq ft and is let entirely to the long-term tenant, Farmfoods, who have occupied the property for over 25 years. The frozen food and discount supermarket have a lease until March 2029 at a rent of £38,700 per annum.