Development Securities sells £13.15m Grimsby investment
PROPERTY development and investment company Development Securities announced today that it has sold its House of Fraser department store on Victoria Street in Grimsby for £13.15m.
The store was sold to a pension fund managed by Rockspring Property Investment Managers.
The 92,318 sq ft building is let to House of Fraser until 2039. The disposal reflected a net initial yield of 7.09%.
Matthew Weiner, investment director at Development Securities, said: “In disposing of this asset we are crystallizing the significant increase in its value which has occurred since we acquired it in 2009.
“We feel that the market momentum behind this recovery in capital values has now peaked and we have identified a number of opportunities for reinvestment where there is greater scope for our asset management skills to be applied to generate out-performance.”
The sale has allowed Development Securities to recycle equity which will be used to pursue assets with higher return potential and greater scope to add value, the company said.
Development Securities acquired the freehold of the property for £10.5m in August 2009.
You could be missing out on BREAKING NEWS ALERTS if you haven’t signed up for our daily emails. Check your settings here
