CBRE Global Investors has sold Reading Retail Park in the English town of Reading for £31 mln (€37 mln) reflecting a net initial yield of 6.8%.
The buyer has not been named.
The property, which was part of the CBRE UK Property PAIF (UKPP) portfolio, comprises eight retail units totalling 118,255 ft2 (10,986 m2), plus 430 car parking spaces. It is currently fully let to retailers including Wickes, Halfords and KFC with a weighted average unexpired lease term (WAULT) of 10 years.
'It is key that we continue to recycle assets to ensure our portfolio is of the highest quality. In line with our strategy, we continue to invest capital in quality asset and creating value for our investors,' commented Hannah Marshall, fund manager of the CBRE UKPP. 'As an asset based in a non-core location, it allows us to focus more on acquiring core properties which aligns with our portfolio strategy.'
According to CBRE GI, the disposal reduces the portfolio's large weighting towards retail warehousing and allows for selective purchases particularly in the industrial and alternatives sectors. As of December 2016, it was the seventh largest asset within the portfolio, making up 2.2% of the capital value and 3.0% of the portfolio income.
CBRE Global Investors was advised by Cushman and Wakefield.
