Savills Investment Management has announced the purchase of the freehold interest in House of Fraser in Chichester. The Charities Property Fund that is managed by Savills Investment Management and has made the purchase for the price of £13.4 million. The property in question includes the only department store in Chichester. The House of Fraser is located in a prime trading position in the city centreand has also been recently refurbished. The 69,313 sq. ft. space has an unexpired lease term of more than 22 years. The building goes through five yearly rent reviews and the price paid by Savills IM’s Charities Property Fund reflects the initial net yield of 5.26% as well as a capital value of around £193 per sq. ft. The decision by Savills Investment Management follows The Charities Property Fund sale of two high street retail investments that were also located in Chichester. These two retail investments were smaller than the new House of Fraser investments. The retail units were let to WH Smith for £3.82 million and Oasis for £2.55 million. The WH Smith was let for this amount in reflection of the 4% net yield and Oasis for their 3.69% net yield. It is thought that both of these properties had a combined capital value of £818 per sq. ft. These two units were sold at a record low, therefore Savills have relished the opportunity to buy back in to the Chichester are with a yield that is predicted to be 35% higher. The company will also benefit form the longer lease and a lower capital value. The House of Fraser unit is valued at 75% lower capital value per sq. ft. because of the low rent that is being paid by House of FRASER. This new investment also has the advantage of larger retail frontage, being part of an attractive building and an excellent location in Chichester, opposite the Cathedral.