Cubemaker sells Cobham retail parade for £6.5m

10.12.12

Property investment fund, Cubemaker, has sold a prime parade of eight shops in Cobham, Surrey for £6.5m.

The investment at 26‐38a High Street has been bought by Elmbridge Borough Council. The shops are arranged in two self‐contained blocks with first and second floor ancillary accommodation and two maisonettes. The property also includes garages to the rear of the parade which provides a potential residential development opportunity.

The shops are let to a variety of occupiers including Costa Coffee, Mint Velvet, Crew Clothing and Sotheby's Estate Agents. The sale of the retail element reflects a net initial yield of circa 6% with a reversionary yield of 6.68%.

Created by Cube Real Estate, Cubemaker is a £100m UK‐focused opportunistic property fund which is targeted at producing above average total returns through strategic buying, active asset management and planned exits. Its investors include BP Pension Fund's Ropemaker Properties, Staffordshire County Council Pension Fund and a number of high net‐worth individuals.

Cube Real Estate's Jonathan Lawes commented: "Following Cubemaker's acquisition of this asset, we implemented a programme of active management which encompassed renewing leases, taking surrenders and reletting space as well as refurbishing the residential space and devising a planning strategy for development of the garage space.

"This active management has enhanced the property, improved the tenant mix and increased the rental tone of the shops from a zone A of £85 to £110. The resultant improvement in capital value has been well ahead of initial projections".

Strutt & Parker acted for the purchasers. Jackson Criss advised the vendors.

Cobham-High-Street

Further information:

Jonathan Lawes Cube Real Estate 0845 262 5544

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