A private Israeli investor, has acquired a prime retail development in West Hampstead, London from Ballymore for £7.4m, reflecting a net initial yield of 4.12 per cent.
The 9,757-sq ft high street retail development, Heritage Lane West Hampstead, is anchored by Marks & Spencer and generates an income of £325,460 pa on new 10-15 year leases. The units are let to Marks & Spencer (78% of income), The Provenance Meat Company, The Village Haberdashery, and Johns & Co Estate Agents. The development has been sold as a 999 year long leasehold at a peppercorn rent.
The retail square is located at the heart of the £124.7m mixed-use Heritage Lane development and will serve 198 new homes and office workers on site, as well as high volume of passing trade. Work has commenced on the construction of a new entrance to the London Overground station and plans are also underway to relocate the entrance to the tube station adjacent to the Square.
The purchaser was advised by GCW and Steven Ossack Associates, Ballymore was advised by Colliers.