The Charities Property Fund, managed by Savills Investment Management, has purchased the freehold interest in a retail asset in the English town of Gateshead for £33.7 mln (€40 mln).
The identity of the vendor was not disclosed.
'This purchase was a rare opportunity to acquire a prominent, sizable and income producing site next to an IKEA and close to the Metro Centre which is one of the most recognised retailing destinations in the country attracting over 21 million shoppers each year,' commented Angy Benitz, portfolio manager of The Charities Property Fund.
The property, recently let to Sports Direct and The Range from Tesco, covers around 150,000 ft2 (14,000 m2). The price reflects a net initial yield of 5.56%, with an estimated reversion to 6.1% at the next RPI review in August 2018.
Savills Investment Management was advised by Staunton Whiteman. The vendor was advised by Savills.
