Pan-European investor Europa Capital and UK-focused fund Sovereign Centros have acquired a shopping centre and retail park in Birmingham, UK from Standard Life Investments for £69 mln (€80 mln). The price represents an initial yield of 7%.
The One Stop shopping centre and retail park, Perry Barr, is located around three miles from Birmingham and comprises 380,000 ft2 (35,000 m2) of space.
The asset is currently 13% vacant by rental value and is Europa Capital’s second joint venture with Sovereign Centros, following the acquisition of Corby Town Centre from Helical Bar Plc in March 2015.
'We are delighted to have completed our second transaction with Sovereign Centros. We believe that Perry Barr offers Europa Fund V the opportunity to continue to enhance leasing performance of the asset and benefit from high cash on cash returns in a sector that is attracting increasing interest from domestic and international institutional investors,' commented Hugo Black, Partner at Europa Capital.
The property comprises two elements, a shopping centre anchored by Asda and a retail park. Key retailers include Marks and Spencer, Nike, Argos, Wilko, Boots, New Look, Sports Direct, Arcadia, Home Bargains and Poundland.
'Sovereign Centros and Europa Capital are delighted to have acquired from Standard Life. The asset sits in an interesting area within Birmingham which is planned for significant change. We look forward to taking our plans for the asset forward,' said Chris Geaves of Sovereign Centros.
Europa Capital and Sovereign Centros were represented by Savills and Standard Life Investors by Strutt & Parker.
