Rockspring bags UK shopping centre from RBS for €35m

Rockspring Property Investment Managers has acquired Orchard Shopping Centre in the southwest UK town of Taunton from lender RBS for £27.55 mln (€35 mln), reflecting an initial yield of 6.65%.

The asset was bought on behalf of Rockspring’s UK Value 2 core plus fund, which now owns assets worth over £200 mln.

Orchard Shopping Centre was refurbished and rebranded in 2009 and is the dominant retail destination in Taunton, comprising 13,400 m2 of space with 60 retail units and eight residential units. It is currently leased to retailers including New Look, Waterstones, WHSmith, Superdrug, Santander UK and Ernest Jones, with a weighted average unexpired lease term of 5.03 years.

‘The Orchard Shopping Centre is a prime scheme in a dominant regional town, making it a strong fit with our retail strategy,’ said Richard Bains, Rockspring partner and fund manager of the UK Value series. ‘In addition, there is clear scope for us to generate further value from the property with the development potential for an extension to enhance the leisure facilities in the town centre.’

Neville Paterson, global director of real estate at RBS Restructuring, said: ‘During the two years of RBS’ ownership we have undertaken a series of successful asset management initiatives, including the completion of a number of significant lettings to well-known brands such as Bill’s Diner, Anytime Fitness, L’Occitane, as well as various lease regears, which have helped to reposition and improve the perception of the centre.’

Rockspring was advised by KLM whilst Savills acted for RBS.