UK REIT British Land said on Tuesday that it has completed on the acquisition of three retail parks for a total of £94 mln (€107 mln) and sold its 50% stake in a retail park in Preston for £30 mln.
The deals, which were completed over the past four months, are in line with the firm’s strategy ‘to actively recycle capital and consolidate its position as the UK’s largest owner and operator of retail parks’.
The acquisitions include the 300,000 ft2 Capitol Retail and Leisure Park, Preston for £51.5 mln, representing a net initial yield (NIY) of 8.43%; the 90,000 ft2 Solartron Retail Park for £35 mln (7.65% NIY) and DFS, 442 Newmarket Road, a 20,000 ft2 prime retail warehouse in Cambridge for £7.35 mln (7.14% NIY).
The firm’s 50% stake in Deepdale retail park, Preston was sold to Melford Capital for £30.3 mln.
Kelly Cleveland, head of strategy and investment at British Land, said: ‘With retailers increasingly focused on the role of their stores, retail parks have emerged as a preferred format, due to their compatibility with omni channel retail, their affordability and appeal to online resilient businesses. This is driving good occupational demand across the portfolio reflected in our 97% occupancy and growing ERVs.’
