Matterhorn/S2 buy Bromley high street opportunity

By Paul Norman - Friday, September 08, 2017 15:00

Friends First Group, the pension and Irish life assurance company, has sold its freehold interest in 64-70 High Street Bromley to a joint venture between Matterhorn Capital and S2 Estates, for £13.35m.

The property was part of Friend’s UK Select fund which invests in properties with good income returns in select UK locations with some focus on redevelopment and refurbishment opportunities. The fund has returned 7.26 % in the year to date.

The retail block in Bromley is situated diagonally opposite The Glades shopping centre and comprises a former House of Fraser department store, now let to TK Maxx, and three other retail units let to Maplin Electronics, Headmasters and Urban Junction.

In addition, there are five self-contained flats above the retail units. The block generates a total income of £738,300 per annum and has potential for a retail and residential redevelopment upon expiry of the leases, which fall-in between 2019 and 2021.

Bromley Council has identified the property as an Opportunity Site, potentially suitable for redevelopment as a tall building. The price reflects a net initial yield of 5.2%.

Doherty Baines represented Friends First whilst Spencer Sheridan acted for the purchaser.

pnorman@costar.co.uk

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