Glenbrook Investments has continued its run of recent regional acquisitions with the purchase of 5-6 Commercial Street in the heart of Leeds city centre from Legal & General, an off-market deal for a price of £1.74M, reflecting a NIY of c8.8%.
The property, which is let to Watches of Switzerland and trades under its Goldsmiths brand, is let on a lease expiring 2030 at a rent of £162,500 per annum. The lease was re-geared in 2020, during the height of the pandemic, when the rent was also significantly rebased.
Speaking about the latest acquisition, Scott Griffiths, Investment Director at Glenbrook, commented: “This is our second investment in Leeds city centre following the £6.7million purchase and £1million refurbishment of Albion Court, now renamed as St Albion’s. It underscores the belief we have in Leeds’ post pandemic recovery and longer-term growth potential. In particular, we like Commercial Street because of its concentration of jewellers and high-end watch brands; retailers that traditionally like to trade alongside one another and are less impacted by online shopping. Recent letting activity on the pitch means that there is no availability and we like these situations, as they generally provide superior income durability and opportunities for growth.”
Neighbouring occupiers to Goldsmiths include Chisholm Hunter, Austen Blake, Beaverbrooks and Boodles, with new entrants to Commercial Street including IWC, Mont Blanc, Jaeger Le-Coultre, Panerai and Breitling, as well as a new Ernest Jones facia taking the old Clarks store.
Zameero and CMS acted for Glenbrook Investments and Acuitus and Eversheds Sutherland acted for L&G.