The mixed-use Dolphin Quays development in Poole, Dorset, has been put up for sale with a price tag of more than £7m. The sale price represents a net initial yield of 9.46%.
The 71,594 sq ft waterfront scheme comprises a mix of retail, restaurant and office accommodation across ground and first floors on a 2.62 acre site, with residential units above.
Dolphin Quays is 80% let to tenants including cosmetics company Lush, Tesco, Pavers and Poole Pottery in addition to a number of F&B tenants.
There are some vacant units in the mall element of the scheme, which should benefit from the recent completion of a major residential development at the rear.
Dolphin Quays is held part freehold/part long leasehold and generates a total net rent of £707,185 per annum, with 33% of rent generated from the office space, 27% from retail, 25% from restaurant operators and 12% from the residential units.
Christopher Brogan, director in the UK investment team at Savills which has been appointed to sell the development, said: “Dolphin Quays enjoys a fantastic corner location on Poole Harbour and is part of the main retail and leisure offer on the waterfront. The property provides a really interesting combination of retail, office and leisure, plus long dated income from the ‘sold off’ residential units, to give a rare overall WAULT of circa 17 years.
“The buyer has the opportunity to drive performance and income through the letting of the mall units, that are going to benefit from footfall from the new apartments that have been developed at the rear.”
