Hunter UK Retail Trust completes €27m UK high-street spree

The deal takes total spending in the closed-end vehicle to over £43 mln since its launch 10 months ago.

In Bristol, Hunter has acquired a recently refurbished 12-unit retail parade situated in a prominent position on Union Street for £9.6 mln. The 65,000 sq ft (6,000 m2) site is let to 11 tenants including Cotswold, Halfords, Ladbrokes, Poundland, Costa Coffee and Pure Gym.

The fund has also acquired two units for £5.52 mln in the heart of Edinburgh city centre, totalling 8,891 sq ft. The first, 31 Frederick Street is currently leased to Chiquitos over the ground floor and Laings on the first floor, whilst 29 Frederick Street has been purchased with vacant possession following Laings’ relocation to its new store.

Hunter has agreed a lease surrender from Chiquitos and has submitted a planning application to combine the unit with the neighbouring 777 sq ft unit previously acquired by the fund in November. Subject to planning approval and licensing, the new combined 5,000 sq ft unit will be leased to Mitchell & Butlers. Laing’s will continue to occupy the first-floor premises.

The fund has also bought a 43,000 sq ft retail parade in Aberdeen. Acquired for £7.66 mln, the units are currently let to retailers Sports Direct and Poundland, in addition to independent restaurant operator, The Shack.

The acquisitions are in line with Hunter UK Retail Trust’s strategy to invest in blocks of underutilised assets situated in desirable high street-led locations across the UK.

Commenting on the deals, Andrew Moffat, fund manager at Hunter, said: 'We continue to add to the fund’s portfolio, selectively acquiring quality assets which align with our overall strategy for the Hunter UK Retail Trust. This latest round of acquisitions provide excellent opportunities for proactive asset management as well as providing strong income returns and demonstrate our continued confidence in the UK high street and the returns available in particular pockets around the country.'