Posted: 09.09.19 at 12:20 by Tim Lethaby
The Glastonbury branch of DIY and home improvement brand B&Q has become the latest investment for South Somerset District Council (SSDC).
The Glastonbury site has been acquired for £4.405 million as part of the council’s commercial strategy. The aim is to invest in a diverse range of assets and generate income which will mitigate a reduction in central Government funding.
It will also ensure SSDC can protect the wide range of services its communities receive.
Acquisition advice was provided by retail warehouse specialist Ellie Kirkby at Avision Young and the legal work undertaken by Paul Longman, partner at regional law firm Trethowans.
The property is a 27,000 square foot retail warehouse, with 8,000 square foot external garden centre and 4,000 square foot secure delivery yard.
It has been tenanted by B&Q since its construction with an unexpired lease term of seven years.
The council undertook substantial due diligence, mindful of current difficulties within the retail market.
However, the councils says the store has performed well since opening in the early 1990s while the lack of competitors locally and lack of retail warehousing in the town made the investment opportunity attractive and able to pass the council’s strict investment criteria.
The property was also purchased with an eye on the future development of part of the car park, which will allow income and capital value to be maximised.
The council’s portfolio holder for economic development including commercial strategy, John Clark, said: “While it is out of district, this store is one that we know well and one that we consider to be shielded from the general malaise that has hit retail warehousing.
“This investment is the latest success in achieving the aims of our commercial strategy, which is focused on generating income to secure the provision of public services. We are pleased to report we are on target to meet our commercial targets.”
Ellie Kirkby said: “This should prove to be a solid investment for South Somerset Council.
"The unit is let at a reasonably low rent, and the lack of other major DIY provision in the town, coupled with a distinct lack of retail warehouse supply, makes this an attractive and relatively rare investment opportunity. In addition there are asset management opportunities for the council to add value here.”