UK specialist investment manager Orchard Street has purchased a retail park in Manchester for £63 mln (€70.5 mln) from the Crown Estate.
The acquisition of Altrincham Retail Park in Greater Manchester was made on behalf of St James’s Place Property Unit Trust and represents a net initial yield of 6.96%.
'We’re pleased to make this yield-accretive acquisition which presents immediate asset management opportunities to improve the WAULT and benefits from the affluent Altrincham catchment,' commented Tom Chadwick, associate partner at Orchard Street.
The retail park comprises 218,764 ft2 of accommodation across 13 retail warehouse units and two standalone restaurants, in addition to 927 on-site car parking spaces.
Tenants include TK Maxx, DIY retailer Homebase and fast food operator McDonald’s, drawing approximately four million shoppers annually. The asset has an weighted average unexpired lease term of 5.2 years and the total rental income is £4,683,535 per year, reflecting an average rent of £21.40 per ft2.
The Crown Estate, established by Act of Parliament, is not able to borrow, and as such, sales are an important part of raising capital for reinvestment across the business.
'Altrincham Retail Park has performed well and helped us to build critical mass within the retail sector. As an actively traded portfolio, sales such as this one play, an important role in helping to raise capital for reinvestment across the business, where we continue to deliver brilliant shopping and leisure destinations,' said
Geoff Ford, for The Crown Estate’s regional portfolio.
Orchard Street was advised by Savills, while The Crown Estate was advised by Wilkinson Williams.
