Private real estate fund manager Clearbell Capital has purchased the Octagon retail park in Stoke, UK for £28 mln (€31 mln), on behalf of one of its funds.
The net initial yield is 8.3%.
The asset is the first acquisition in Clearbell Property Partners III to be announced since the fundraise of £310 mln.
Octagon Retail Park is located in the core of Stoke’s out-of-town retail provision and is the region’s leading furniture and homewares retail park. The site comprises 137,000 sq ft (12,730 m2) in total and is currently let to eight tenants, including DFS, Wren Kitchens and Sofaworks.
Rob West, partner at Clearbell Capital, said: 'Retail is the main sector currently experiencing real distress, and this is starting to be reflected in pricing. The key is to buy off sustainable, rebased rental levels. Our research indicates that consumers purchasing large, expensive items like furniture tend to try before they buy and this is driving footfall resilience in retail warehousing.'
Clearbell was advised by Morgan Trend and Curson Sowerby. The seller was advised by First Alliance Properties and Harvey Spack Field.
