Multi-million pound deal for department store

A LONDON-based institutional investor has sold Hoopers department store in Harrogate for more than £4.5m.

Royal London Asset Management sold the 20,500 sq ft landmark store in James Street in the heart of Harrogate’s retail area to a private family trust.

The deal represents a net initial yield of 6.5%. Hoopers has a lease on the property paying £315,500 rent per year for a further five and a half years.

Rebecca Farnsworth of the Leeds office of property consultants Knight Frank advised RLAM.

Ms Farnsworth said: “James Street in Harrogate has avoided the vagaries which are hitting many high streets.

“This transaction, involving one of the town’s most famous stores, proves that deals can be done in this challenging climate, if the product is right.

“In this case, the location in particular generated significant competitive interest for the property.”

Orme Retail advised the private family trust.