CBRE Global Investors, acting on behalf of a pension fund client, has acquired Central Retail Park in Milton Keynes from Rockspring Property Investment Managers’ TransEuropean Property Limited Partnership IV. The deal was an off market transaction for £34.97 million, reflecting a 5.84% p.a. net initial yield.
The park totals 107,700 sq ft with a fully open A1 planning consent including food and is fully let to Pets at Home, Hobbycraft, Next, Poundland, Halfords, Decathlon, Smyths Toys, EE and Go Outdoors. The investment provides a weighted average unexpired lease term (WAULT) of just over 8.5 years to breaks and is let off an affordable rental base averaging £20 per sq ft.
Tim Munn, Senior Director, CBRE Global Investors, said: “We are pleased to secure this retail park, which fits our strategy of enhancing the quality and scale of our client’s retail assets. Milton Keynes has strong demographics and the park has an attractive retailer mix and an excellent trading profile. We believe the park is well placed for rental growth and presents a number of asset management opportunities.”
Paul Hampton, Partner at Rockspring and Fund Director, TransEuropean said: “Since taking ownership in late 2009, the team has successfully re-tenanted and stabilised this investment and with this sale, closed out an exciting and rewarding value-add business plan for TEP IV.”
Montagu Evans advised CBRE Global Investors and Harvey Spack Field advised Rockspring.
