LaSalle Investment Management has purchased The Morgan Quarter in the Welsh capital Cardiff from London-listed property company Helical for £55 mln (€65 mln).
The deal includes the former David Morgan Department Store in the city centre and two Victorian arcades, which have been comprehensively refurbished to comprise over 28,000 m2 of retail and office space.
The sale price is in line with Helical’s March 2016 book value and reflects a net initial yield of 5.9% and a reversionary yield of 6.9%.
'This significant sale, at an attractive yield, represents the eighth retail asset we have sold since March 2016. In line with our continued repositioning of the portfolio through value-enhancing disposals, our retail investments now comprise just a small number of retail warehouses,' commented Duncan Walker, investment director, Helical. 'Our intention is to recycle the majority of the proceeds of this disposal into our London portfolio.'
Current tenants include White Stuff, Jack Wills, Urban Outfitters and Molton Brown. The Creative Quarter offices were awarded two BCO awards in 2017. An additional 56 residential apartments were built above the retail space and have since been sold.
