Chichester’s flagship department store, House of Fraser, has seen its freehold bought for £13.4million.
The Charities Property Fund, managed by Savills Investment Management, has purchased the freehold interest from TH Real Estate for £13.4m. It has recently been refurbished the retailer, owned by China’s Sanpower, and extends to 69,313 sq ft.
It follows the fund’s January sale of two Chichester retail investments; selling the freeholds of WH Smith for £3.82million, reflecting a net initial yield of 4 per cent, and Oasis for £2.55million, reflecting a net initial yield of 3.69 per cent.
The House of Fraser lease has an unexpired term of in excess of 22 years with five-yearly rent reviews. The price reflects a net initial yield of 5.26 per cent and a capital value of approximately £193 per sq ft.
Chichester is the latest House of Fraser location to change hands after Odysseus Capital Management bought the retailer’s Leamington Spa site last summer for £18.15million, for its maiden purchase.
House of Fraser’s Manchester flagship at 98-116 Deansgate is also on the market, after being brought to market by Savills in October.
Harry de Ferry Foster, fund director, said: “Having recently sold two assets in Chichester at a combined yield of 3.88 per cent, a record low, we welcomed the opportunity to immediately buy back in at a yield 35 per cent higher, with the benefit of a much longer lease and the added benefit of a capital value per sq ft that was 75 per cent cheaper, reflecting the very low rent being paid by House of Fraser.
“This asset also has extensive retail frontage and occupies an excellent position opposite the Cathedral. It is a very attractive building and offers a number of opportunities for alternative uses in the future.”