Burnley Homebase investment sold

Gregory Property Group has sold a retail warehouse occupied by Homebase in central Burnley for £4.765m, reflecting an initial net yield of 6.69%.

The 25,000 sq ft property at Ashfield Retail Centre is leased to Homebase at a rent of £337,500 a year with the lease set to expire in May 2029. The property was acquired by an unnamed retail fund.

Richard Tovey, director of Gregory Property Group, said: "We purchased the former car showroom site in 2005 when this area of Burnley was starting to see major regeneration and undertook the single unit development in late 2008. The location is now an established retail area with many of the major food and non-food operators close by. Also, the decision by Burnley College to locate on the adjoining site has further strengthened this part of the town.

"With no other DIY stores in Burnley, the investment will be an attractive asset for the purchaser."

Graham Foxton, associate director at BNP Paribas Real Estate advised Gregory. Foxton said: "This is a clear indication that investor appetite for well let secure investments has definitely improved during 2013, which created a competitive marketplace. The investment presented an opportunity to acquire a good quality asset with a relatively long unexpired term, which is well placed in the DIY retail warehouse sector."

The purchaser was advised by Adam Ramshaw of Lambert Smith Hampton in Birmingham.