LaSalle Investment Management has acquired Purley Way retail park in Croydon, UK from IM Properties for £45.6 mln (€60 mln), reflecting a net initial yield of 4.59%.
Purley Way is fully occupied and comprises nearly 6,500 m2 of predominantly open retail warehousing. The site also includes a 0.5 acre area of undeveloped land to the rear.
Existing tenants include SCS, Carpetright, Oak Furniture Land, Harveys and Sofology.
'This purchase is in line with our strategy to acquire high-quality, dominant properties. It is rare for this quality of retail park to come to the market and we are delighted to have been able to secure it,' said Rafi Simmons, senior asset manager at LaSalle Investment Management.
'Croydon is London’s largest borough and continues to be one of the strongest retail locations in the UK. Its forecast population growth together with a proposed multi-billion Pound strategic investment plan, will further strengthen its attraction as a place for people to live and work.'
IMP bought the site in two tranches between 2010 and 2012.
Purley Way is one of a number of assets IMP has disposed of in recent months to recycle capital and fund its future strategic growth, most notably a £200 mln industrial portfolio sold to Malaysia's state pension fund, which completed in February.
'Whilst some property companies are being more cautious, we felt the time was right to realise our investment when a lack of product is coming to the market. The excellent yield achieved clearly shows we made the right decision,' added John Hammond, investment director at IMP.
LaSalle Investment Management was advised by CWM, while IM Properties was advised by JLL.
