M&G Real Estate has acquired Parc Trostre retail park in Llanelli, southwest Wales for £156 mln (€196 mln), reflecting a net initial yield of 5.07%.

M&G Real Estate has acquired Parc Trostre retail park in Llanelli, southwest Wales for £156 mln (€196 mln), reflecting a net initial yield of 5.07%.

The off-market transaction was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and Justin Upton.

The vendor was Developer Stadium, which has owned the park since it was developed in 1988.

Parc Trostre comprises 24,500 m2 of retail space and 13,380 m2 of mezzanine space across 34 units.

Alongside anchor tenants Marks & Spencer, Debenhams, Next and Outfit, other major brands include River Island, TK Maxx, BHS, Asda Living and Starbucks. The shopping park is also adjacent to a regionally dominant Tesco Xtra supermarket. The last major refurbishment including partial redevelopment took place in 2008.

Llanelli is 11 miles west of Swansea and 61 miles west of Cardiff.

M&G’s Justin Upton commented: 'Parc Trostre in Llanelli is the dominant shopping park in South Wales. This off-market purchase continues our strategy of acquiring "best in class" retail assets in locations with strong fundamentals and growing catchment areas. With a strong fashion-led occupier base and the ability to drive rental values via the introduction of new fascias and asset management we believe the park will fit well into the existing high quality retail warehouse portfolio within the fund.'