Chester’s The Exchange on market for £10.5m
Knight Frank Investment Management is seeking a buyer for the prominent Travelodge-anchored corner block on St John and Pepper Streets, facing the Roman amphitheatre, with the opportunity for office refurbishment in the non-hotel parts.
The mixed-use building contains the 60-bed Travelodge, as well as four restaurants and bars totaling 16,750 sq ft and offices of 24,000 sq ft over three floors.
Matt Stretton, partner at Knight Frank, handling the sale, said the asset was ripe for the sort of modern office that is currently in short supply in Chester.
The final leisure unit was let last September to Rileys, the snooker and darts chain. The other leisure tenants are Pizza Express, Zugers and Popcorn Bar.
Office occupiers include engineering consultancy Ramboll UK, invoice financing provider Zodeq, and Optical Express. There are more than 8,000 sq ft of vacant offices, marketed at £12/sq ft.
The property has a total rental income of £926,000 a year and the asking price would reflect a net initial yield of 8.31%. Travelodge accounts for 40% of income and has its next rent review due in July 2028.
The Exchange was redeveloped into its current mixed-use configuration in 2007.
