Convenience store buys investment properties

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ONE of the largest convenience food retailers in the south has acquired premises for its investment portfolio.

Commercial property consultancy Vail Williams LLP, which has offices in Portsmouth, acted for Southern Co-op in the deal for Unit 3, Queen’s Square, Ascot Business Park, Ascot, Berkshire.

Salmon Harvester Properties Ltd sold the 2,067 sq ft office to Mutual Associates Ltd, the property trading division of Southern Co-op, with an initial yield of 7 per cent.

The office is let to KSF Acquisition UK Ltd for five years, from January 2015, at a rent of £54,775 per annum, equivalent to £26.50 per sq ft, on a full repairing and insuring basis.

Russell Miller, a partner at Vail Williams, which has an office at Lakeside, North Harbour, said: ‘This was an openly marketed investment that we were delighted to be able to secure for our client.

'We frequently act for Mutual Associates Ltd, part of Southern Co-op, and are always on the look-out for investment opportunities for this client.

'Unit 3 at Queen’s Square, Ascot Business Park, generated such an opportunity in a competitive environment – the property provides a healthy rental income which is equivalent to £26.50 a sq ft with good prospects for future growth.'

HMS acted for Salmon Harvester Properties Ltd, the vendor.

Southern Co-op has more than 210 stores in the south of England.

Occupiers at Ascot Business Park include Swedish bank Handelsbanken and drinks wholesale business Interbev UK Ltd.