Cordatus Property Trust, a programmatic venture between Cordatus Real Estate and CBRE Global Investment Partners, has acquired a shopping centre in Londonderry from British Land for £14.7 mln (€17 mln).
The Lisnagelvin shopping centre, a 10,000 m2 asset anchored by Tesco, Primark and Poundland, was acquired for a net initial yield of 7.9%. It represents the city's main centre for convenience shopping with a large catchment that also extends across the border into southern Ireland.
'We like to invest in convenience shopping centres as they tend to be resilient to economic fluctuations whilst providing attractive income returns,' commented Cordatus director Gavin Munn. 'Lisnagelvin is a well-located, dominant centre with a large catchment and offers a strong income return, long WAULT and the prospect of rental growth. We expect it to be a strong contributor to our fund.'
'This asset further enhances the above market income distribution generated by the CPT portfolio, which will be a key factor to delivering outperformance over the next few years,' added Alex Bignell, head of UK, CBRE Global Investment Partners.
The Cordatus Property Trust was launched in December 2015 and has an initial funding target of £150 mln of which approximately £90 mln has been invested with further acquisitions under offer. The vehicle is targeting investment opportunities in strong micro locations, to generate an above market income distribution.
DTZ McCombe Pierce acted for Cordatus and Savills acted for British Land.
