Private investor swoops for Shrewsbury's Princess House in £12 million deal

Princess House, which overlooks the town's Square, has been sold by Addington Capital to private investor clients of Knight Frank.

The 52,500sq ft property comprises retail and leisure let to tenants including JoJo Maman Bebe, Patisserie Valerie, Starbucks and Côte.

The upper floor offices are let to various government/council agencies, including Shropshire Community Health NHS Trust and the Ministry of Defence.

The current rent roll is £844,100 and the sale reflects a net initial yield of 6.4 per cent.

The building was constructed in the 1970s and refurbished in 1997.

Rob Dales, partner at KLM Retail which represented Addington Capital, said: "Prime multi-let properties in right-sized affluent towns continue to experience strong investor demand due to more robust market conditions."

Alex Wagstaff, partner at Addington Capital, added: "During our period of ownership we have improved the tenant mix with the letting to Côte and regeared a number of leases to provide a platform for growth for the next owner. The retail market continues to provide active management opportunities and we will continue to target the sector."

Controversy

Princess House was constructed in 1971, and preparation of the site involved the demolition of the former Shire Hall building, constructed in about 1830 to a design by Sir Robert Smirke, together with a number of older buildings, of the kind which still exist on the other side of The Square, and in the adjoining streets.

The retail units enjoy a good level of occupation, and the area in general is very well regarded.

A scheme has been undertaken, not without some local controversy, to upgrade the shop frontages, and modernise them, in a way which enhances their presence on The Square.

Last year renowned French-inspired brasserie Côte chose Shrewsbury to open its first Shropshire restaurant.

Côte invested more than £1 million in creating their chic Parisian-style 145 cover brasserie in Princess House, creating around 40 jobs.

The office accommodation, however, is less well used, suffering from its’ age, without substantial improvement, and a general trend toward businesses downsizing offices, and/or relocating to newer, purpose built office parks outside the town centre.

Meanwhile, it recently emerged the blood collection service provided at Princess House is being moved because of “unexpected costs”.

GP patients who have previously used the phlebotomy service at Princess House will have to attend Elizabeth House based at the Royal Shrewsbury Hospital, which already provides walk-in phlebotomy clinics.