St Annes’ Booths store sold for £9.1m
The 38,000 sq ft food store on Main Drive in Lytham St Annes, Lancashire, has been sold out of receivership from a company owned by Marcus Worthington Group, whose construction and property arms went into administration last year.
Knight Frank’s investment management arm, Knight Frank Investment Management, acquired the property on behalf of one of its institutional investor clients, the Lancashire County Pension Fund.
The agreed sale price represents an initial net yield of 8%.
Avison Young was the sales agent for the vendor, a special purpose vehicle owned by one of Marcus Worthington Group’s defunct companies.
Marcus Worthington & Company, the group’s construction arm, collapsed into administration last October, and was followed by Marcus Worthington Properties, the group’s development arm, at the beginning of November.
The Booths food store opened in 2015 with the upmarket regional supermarket chain signing a 35-year lease on the 38,000 sq ft building.
Adam Wildig, investment director at Avison Young, said: “There was strong interest in the property from both institutional and private investors.
“Despite the challenges Covid-19 has presented, it was encouraging to see Knight Frank look at a long-let investment with good property fundamentals.”
John Styles, partner at Knight Frank Investment Management, said: “This is a resilient asset at an attractive price at what we see as an opportune time in the investment market.
“The 30-year lease provides an attractive and stable income return, alongside the asset enhancement opportunities we have identified. We continue to seek investment opportunities within the county of Lancashire.”
KLM Retail acted for the buyer.