Princes St unit sold by Savills

Kames sells city centre Tesco store for £2.55m

Tesco advertisingA prime unit on Princes Street, Edinburgh, occupied by Tesco, has been sold for £2.55 million, producing a net yield of 5%.

Savills handled the sale of 140/141 on behalf of Kames Property Income Fund to Whinstane, part of Thistles Properties Group.

The property totals 6,926 sq ft (645 sq m) over four floors which are let entirely to Tesco on a 20-year lease from 2012 at a rent of £135,000 per annum. There is a tenant only break option in 2022, and the 2017 review of the lease is index-linked to the retail price index.

Mark Fleming, director of investment at Savills Scotland, said: “A prominent retail site on one of Edinburgh’s main thoroughfares, 140/141 Princes Street is a solid investment opportunity with a secure income stream.

“The sale represented a good prospect for the vendor to trade out of a smaller lot size in the fund at a profit whilst offering the purchaser a well secured prime investment opportunity.”

 Whinstane was represented by Montagu Evans.

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