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Town centre bank hits the market with a £1m guide price

A GRIMSBY town centre bank has become an investment opportunity in its own right, as it goes under the hammer with a guide price of £1 million.

Town centre bank hits the market with a £1m guide price

The Grade II-listed Victoria Street building, home to the area’s primary Barclays branch, is being sold by receivers.

It had been bought by private investors back in December 2006 for £1.79 million, ahead of the financial crash that saw property prices decimated.

Barclays will be unaffected by any transaction, and with an annual yield of 9.5 per cent based on the guide price and current tenancy, it appears to be one of the most attractive lots in the sale, as well as the cheapest in the category.

As ever, it will be seen as a litmus test of investment appetite in the town.

The £95,000 a year lease to the UK’s second largest high street bank expires in 2026, with a potential break in 2021, although confidence in the occupier is clear from the company handling the auction. It is one of eight national banks, with seven Halifax branches also included from the same client, albeit split into separate lots.

Richard Reed, head of property at auction manager John Pye Property, said: “This is a unique investment opportunity for this area. This Grade II listed building comes to market along with a portfolio of banks valued at £20 million in total.

“Along with the other branches, this is a significant portfolio of commercial properties being sold and as a result we expect to see massive interest from national and overseas investors. All properties are prime for investors looking to buy good quality stock when there is not a great deal of top quality investment properties coming to market.

“The properties are in fantastic high street locations in UK towns and cities. Yields range from 5.5 per cent to 9.7 per cent – they offer great returns from blue chip tenants.

“It is recognised that banks are secure tenants and there are long leases remaining on the buildings from long standing tenants.”

The neo-classical building covers 716 sq m across three floors.

Earlier this year 43-45 Victoria Street – TSB and Boots on the adjacent corner – was sold by regional agent Garness Jones on behalf of a London-based company to an investor for £950,000, providing a net yield of 7.31 per cent.

LPA Receiver Simon Hunt of JLL, said: “I am confident that a large amount of interest will be generated in these blue chip investment opportunities from a wide range of UK and overseas buyers and I am very much looking forward to some fantastic outcomes for our lender client.”

The two day auction will take place from November 15. For more information visit www.johnpye.co.uk/property-auctions.

News Courtesy: www.humberbusiness.com

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