The Lanes in Carlisle goes up for £16m

Savills is marketing the long leasehold for the 437,300 sq ft shopping complex on behalf of appointed receiver Cushman & Wakefield.

The guide price for The Lanes is £15.7m, a figure that represents a net initial yield of 11.6%. This puts the scheme under a capital value of £36/sq ft.

F&C REIT was the most recent owner of the complex. According to HM Land Registry data, the group purchased the centre in 2012 for £60.4m – nearly four times the amount currently being asked.

The Lanes has a series of strong tenants generating an annual rental income of more than £1.9m a year. These include New Look, Next, Superdrug, Costa Coffee, and River Island.

Primark is the top tenant by income at the Carlisle shopping complex. Its lease has 16 years left on it, while the overall WAULT for The Lanes is just over seven years.

Much of the 107,800 sq ft former Debenhams space is still up for grabs at the mall, with Savills teasing that a “major international retailer” has already agreed terms for the 27,800 sq ft groundfloor part of the unit.

The Lanes is located off Globe Lane in the heart of Carlisle city centre. Credit: PNW

“The offering of The Lanes comes at a favourable time in the UK retail investment market; there are definitely more motivated buyers in the market than we have seen for some time,” said Toby Ogilvie Smals, director of retail investment at Savills.

“Investment volumes are recovering in line with confidence in retail and the desire to capitalise on record high yields,” Smals continued.

“We are optimistic that there will be high levels of interest in The Lanes, as it offers rare opportunity to acquire an asset with a high-quality tenant mix alongside attractive asset management opportunities to drive the asset forward.”