Threadneedle acquires Hull retail park at 6.98% yield

Capital & Regional, the co-investing property asset manager, announced that the Junction Fund has completed the sale of St Andrews Quay Retail Park, in the UK city of Hull, to Threadneedle Strategic Property Fund.

The investment volume of £82 mln (almost EUR 99 mln) reflects a net initial yield of 6.98%. The 30,000-m² scheme in Hull has 18 retailers and was valued at £80.32 mln at end-June this year. Capital & Regional has an interest of 13.4% in the Junction Fund.

The Hull deal comes nine months after UK fund manager Threadneedle bought two retail parks from the Junction Fund. Threadneedle acquired the Kittybrewster retail park in Aberdeen and a scheme in Slough for around £82 mln, a net yield of 6.7%.

The two assets were valued at a combined £79 mln at end-September 2009.