FPDSavills - Retail - Theale, Pincents Lane

Date: 12 Jan 1999

Royal and SunAlliance Property Investments, advised by FPDSavills, have acquired the freehold interest in a retail warehouse unit in Reading, for £3.4 million, reflecting a net initial yield of 6.75%, with a reversion to nearly 8.5% in September 2001.

The unit is let to Aliders Stores Ltd, for 25 years from August 1996 with a surety from Allders Department Stores Ltd. The passing rent of £240,000 per annum equates to £10 per sq ft.

The unit comprises approximately 24,000 sq ft and was built in 1996 by Central and Provincial Properties Ltd. It is situated adjacent to junction 12 of the M4 motorway and within the immediate vicinity there is over 300,000 sq ft of retail and leisure uses, including a 140,000 sq ft Sainsbury's Savacentre, Allied Carpets, Homebase, Carpetright and First Leisure units.

Philip Owen of Royal and SunAlliance commented:

"This purchase is in line with our Unit Linked Fund strategy of investing in established locations offering good medium term growth prospects."

The vendor, Norwich Property Trust, was advised by Wilkinson Williams.

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