Strong demand of commercial investment property
Over the last 12 months we have sold a variety of commercial investment property over most sectors and in lot sizes of anything between £250,000 and £5,500,000.
With no signs of an increase in interest rates, a lacklustre stock market and recent changes in the stamp duty and income tax regulations relating to residential investments, we are seeing continued demand for commercial property investments throughout Suffolk and Essex. There still appears to be a large number of private investors with significant cash funds available looking to secure opportunities in all forms; from well let, dry investments, to higher yielding stock requiring more active management.
The most recent sale completed a fortnight ago. Edwards Walk in Maldon High Street, Essex comprises a fully let retail investment , generating a gross income of about £165,000 per annum and benefitting from 19 incomes streams. Having attracted strong interest the investment was sold to a private investor for close to the £1.85million guide price, representing a yield of about 8.85%.
And there are also some interesting new instructions coming through.
Capital House, Stowmarket
We have a good level of interest in this property located in Stowmarket town centre. The investment ticks a number of boxes with private investors. Being a solid town centre building, with its own car park and fully income producing, but split into a number of individual suites reducing the risk of large voids. The investment is being offered at a guide price of £365,000 equating to a net initial yield of 7.48% after costs.
Little Malgraves Cottages, Bulphan, Basildon, Essex
This property is located 1.5 miles north of the A13 and within close proximity to the proposed Lower Thames Crossing. The property comprises a pair of former semi-detached cottages and associated outbuildings, converted to provide 19 bedrooms , together with extensive grounds and having scope for use as an HMO, subject to planning. The premises are fully let as individual rooms and produce a total gross income of £156,520 per annum. Offers are invited in the region of £1.4million.
Fenn Wright will shortly be commencing the marketing of an attractive town centre retail/residential investment in Ipswich, producing a net income of just over £36,000 per annum. The guide price will be £500,000 and further details will be available within the next couple of weeks.