The Courtyard, Cheltenham

Prime retail and leisure investment

Disposal of the freehold interest of The Courtyard, Cheltenham on behalf of Henderson Global Investors. The Courtyard is fully let boutique retail and leisure scheme situated on the prime trading location of Montpelier Street.
The property provided the opportunity to explore a number of asset management opportunities which Bruce Gillingham Pollard were able to advise the client on prior to sale due to our expertise in development leasing both retail and leisure. This included complete redevelopment (STP) of the retail element to create a best in class leisure scheme. 80% of the income was subject to a lease event (tenant break / expiry) in the next 5 years. We held preliminary conversations with a number of potential A3/A4 operators with our rental aspirations based upon £40-£45 psf on a weighted basis.
Price achieved of £4,650,000 and the sale reflects a net initial yield of 6.10%.

Project Detail

A prime retail and leisure investment situated in the historic spa town of Cheltenham. Cheltenham is a Regency Spa town with an extremely affluent catchment population. An extremely prominent prime trading location on Montpellier Street with significant unsatisfied demand from many national A3/A4 leisure operators therefore excellent reversionary prospects upon development of prime leisure scheme (subject to planning).

The property was built in 1985 and comprises a modern purpose built scheme with shopping on two levels, covered walkways, and a sunken piazza. It has been sensitively maintained by the current owners to create a bespoke shopping environment which offered low obsolescence, minimal empty rates liability and strong tenant demand.

Henderson Global Investors are a global investment management company.
Please contact Harry Wills or Jack Barratt.