HMV building on the market
A PROMINENT building occupied by HMV in Leicester’s retail heart has been put up for sale with a £2.65 million price tag.
The property is located in High Street next to Lloyds Bank and close to the entrance to Highcross shopping centre.
The music retailer pays a rent of £175,000 a year on a lease expiring in 2020.The three storey building, with 12,700 sq ft of retail trading over three floors, is being sold as a freehold investment. It has a further 1,081 sq ft of ancillary space on the second floor.
Kevin Skipworth, head of commercial for selling agent Andrew Granger & Co, said: “I confirm that the property is owned by Irish-based clients and that they are currently considering an offer from a London-based investor.
“It is a substantial property with an iconic occupier brand. The position close to the main Highcross entrance is also a big plus and it is hoped that these factors will lead to an acceptable offer being received from an enlightened purchaser.”
Last year HMV reclaimed its position as Britain’s biggest music retailer after a surge in physical music sales, making it a high profile reliable tenant.
Back in 2013 the future of the chain looked far less certain. It collapsed into administration following a six-year struggle to tackle growing digital music sales.
But the future of the HMV store in High Street, Leicester, was secured after a new buyer was found for the chain.Retail restructuring business Hilco bought the HMV brand and some of its assets from administrators Deloitte, protecting around 2,500 jobs nationally.
Hilco chief executive Paul McGowan said at the time: “We have spent a number of weeks negotiating revised terms with landlords and the key suppliers to the business, all of whom have been supportive of our plans to maintain an entertainment retailer on the high street.
“We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly.
“The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.”
Now, having weathered the worst of the digital storm, HMV has once again established itself as a major player in the music market. It is in the midst of the crucial Christmas trading period, hoping for a suitably festive end to the year. And with Amazon’s new service suggesting its focus might be moving away from physical sales, HMV will no doubt be hopeful for an even more prosperous 2017
Mr Skipworth added: “All in all, this is an attractive building in an excellent location with a tenant going from strength to strength.”
Mr Skipworth said there had been several sales of retail investment property around the High Street and Gallowtree Gate areas over recent months at yields that suggest confidence in the Leicester market.
He said: “This is further enhanced by recent data indicating improving high street sales in most major centres in the country.
“Leicester is a popular location and many firms have been attracted to the city with firms also relocating from the outskirts, such as Mattioli Woods and Natwest which is the latest organisation to come back to the city moving into offices above their Granby Street branch.
“This all leads to increased spending power which is good news for retailers.”