Invista Foundation Property Trust has acquired 88 to 94 Church Street, Liverpool from Aviva Life Fund for £5.55m reflecting a net initial yield of 11.3%.
The Church Street property contains 24,645 sq ft of retail and offices over basement, ground and seven upper floors at the junction of Hanover Street and Church Street.
The entire property is let to Lloyds TSB Bank plc at £664,000 a year, on a full repairing and insuring basis, for 25 years with effect from 25 December 1989, expiring on 24 December 2014. Lloyds occupies the basement to second floors as a bank and the third to seventh floor offices are sub-let to a legal firm until Lloyds' lease expiry.
Duncan Owen, chief executive of Invista Real Estate Investment Management, said: "The acquisition of Liverpool at 11.3% follows Keith House in Edinburgh which was purchased at a price reflecting a yield of 14%, illustrating that we continue to identify new investment opportunities with good property fundamentals at attractive pricing and income yields. These transactions are consistent with our strategy to own a portfolio which display strong fundamentals, whilst disposing of assets where we have successfully implemented asset management plans."