BMO Real Estate Partners' F&C UK Property Fund has acquired a retail park in the English coastal town of Bournemouth for €17 mln.
The fund purchased Ringwood Road Retail Park from Aberdeen Asset Management. The investment volume reflects a net initial yield of 5.78%.
The retail park comprises 55,497 sq ft (5,156 m2) of non-food retail space and is fully let to Argos, Sports Direct, Home Bargains and TK Maxx. The passing rents average €19.3 (£17.24) per ft² with a weighed average unexpired lease term of 7.15 years.
Guy Glover, manager of the F&C UK Property Fund, said, 'The Ringwood Road Retail Park is the fund's first asset of this type and increases its weighting to an attractive segment of the retail sector. As an established shopping location benefiting from strong covenants, the park provides an income return which we feel can be enhanced over the longer term through active asset management. We continue to look at new properties to expand the fund further over the coming months.'
CWM Out of Town advised BMO Real Estate Partners and Harvey Spack Field represented Aberdeen Asset Management.
