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Prime retail investment in Coventry city centre at auction for nearly £1 million

A high-yielding retail investment property in Coventry city centre will be one of the star lots in Bond Wolfe Auction’s next auction in Birmingham for nearly £1 million later this month.

The three-storey unit at 82/92 Lower Precinct extends to around 20,565 sq ft and is currently let to the British Heart Foundation for what will eventually become £160,000 per annum.

The charity is six months into a 12-year contract, with a rent-free period until this August, then half rent until August 2022 when the full annual rent starts.

The full rent will equate to an impressive yield of 16% if the property sells for its guide price* of £999,000+ at the Villa Park auction on Thursday 27 February.

Ian Tudor, managing director of Bond Wolfe Auctions, said: “This is an excellent commercial investment opportunity in the heart of Coventry city centre, within the popular Lower Precinct Shopping Centre.

“This is one of Coventry's leading shopping destinations, hosting over 25% of the city centre's retail stores and welcoming approximately 200,000 shoppers each week.

“Current brands in Lower Precinct include Next, H&M, New Look, Pandora, Lush, The Entertainer, Caffe Nero and Pizza Hut, so the property is set to continue experiencing high footfall.

“The British Heart Foundation is an excellent tenant with a total income of £168 million last year, and it is also the UK’s largest charity retailer, generating a profit of £22.9m in 2019.

“Once the charity starts paying full rent, there are the opportunities of further reviews in years 5 and 10, while the leasehold itself has more than 36 years unexpired.”

Coventry is currently enjoying renewed interest and popularity after it was named as the UK City of Culture 2021 and a host City of the Commonwealth Games 2022.

Mr Tudor added: “The property has recently undergone a comprehensive fit-out by the tenant and provides a modern retail environment, in keeping with the neighbouring units.

“The ground and first floor space can be accessed directly from the mall, while the second floor is accessed internally, and there is direct access to a 524-space car park a short walk from the unit.”

The property is just one of 215 properties appearing in the auction on Thursday 27 February, starting at the earlier time of 10am to cater for what is a record number of lots.