Avignon Capital, the European property investment firm, has expanded its UK portfolio through the off-market acquisition of a prime retail unit with residential flats in Chiswick, London for £5.1m.
The property is located on Chiswick High Road, a vibrant shopping destination in one of the most attractive and affluent suburbs in west London. The retail unit is arranged over a ground floor and let to sportswear brand Mountain Warehouse, trading as Zakti Activewear, with five residential flats above.
The location is popular for family shopping, restaurants and cafes, and the unit is located within walking distance of two underground stations: Chiswick Park and Turnham Green.
The asset provides strong income with good capital and rental prospects on both the commercial and residential elements. Chiswick High Road retail rents have increased by circa 12% between 2009 and 2017 and are set to increase further.
Avignon already owns three retail units in Chiswick, let to retailers such as Patisserie Valerie.
Bianca Tristao, Investment Analyst at Avignon Capital, said: “We are always looking to secure strong opportunities for our expanding UK portfolio and we identified the Chiswick asset as a good prospect due to the location, strong covenant and the opportunity to secure rental growth.
London suburbs are increasingly appealing due to affluent and growing catchments, improving transport links, rental growth prospects and increasing scarcity of stock. Chiswick is one of the most accessible areas of west London due to its close proximity to major road, rail and air links.”
Avignon Capital was advised by Gateley Plc and CWM Retail Property Advisors during the transaction.