F&C REIT buys UK regional mall portfolio at 8% yield

Clients of real estate fund manager F&C REIT have completed the acquisition of the Dollar regional shopping centre portfolio in the UK.

The investment volume for the club deal earlier this month totalled £246 mln (€287 mln).

The 103,000 m2 Dollar portfolio comprises Coopers Square in Burton, Freshney Place in Grimsby and the Eastgate Centre in Inverness).

The purchase price of the assets represents a net initial yield of above 8%.

The schemes are anchored by a number of large UK retailers with a total weighted average unexpired lease term on a portfolio basis of 10 years.

Zvi Noé, director of Investments at F&C REIT, commented: 'This portfolio offers a strong risk-adjusted return profile through downside protection and attractive entry pricing, as well as an exciting range of income and value-enhancing asset management initiatives to explore. These initiatives include physical improvements to the properties, increasing occupancy, improving the tenant mix, re-gearing existing leases and potential extensions to the existing schemes.'