EPF recognised the opportunity to acquire this freehold in an affluent Kent market town, at a significant discount to market value, due to mispricing in the aftermath of the “Brexit” referendum.
Tonbridge has undergone considerable regeneration, with the high street in particular benefitting from substantial investment in recent years.
The property occupies a prominent position on the High Street, opposite the town’s major shopping centre (The Pavilion) and surrounded by major national retail and leisure occupiers including the adjoining Caffé Nero, Boots and WH Smith.
EPF was attracted by the high cashflow and ability to further enhance value and income in the near future.
Investment rationale and Asset management:
- Acquisition of undervalued property in excellent town with very high occupier demand.
- High yield and excellent cash flow from occupiers with exemplary payment history.
- Low rental level representing growth potential.
- Short and medium opportunities to relet to superior covenants and consequentially increase value further.