Knight Frank Investment Management, on behalf of Lancashire County Pension Fund, has agreed the purchase and development funding of Dolphin Square, Weston-super-Mare, Somerset from Life McLaren for £18.45 million, reflecting a net initial yield of 6.05%.
The 73,600 sq ft town centre leisure scheme started construction in November 2015, with opening to trade expected in 2017. The scheme’s occupiers include Cineworld, Pizza Express, Nandos and Costa, totaling £1.14 million rental income per annum.
Knight Frank Retail team advised KFIM – Montagu Evans advised Life McLaren.
John Styles, partner, Knight Frank Investment Management, commented; “We are pleased to have secured this leisure investment in a town where national multiple A3/leisure operators are currently under-represented. We expect the investment to provide a strong income return and long term capital growth for the Fund”
Andrew McGregor, Partner, Knight Frank Retail team, commented:
“This type of cinema-anchored, multi-let leisure scheme has proved extremely liquid, and we expect demand from investors to continue into next year. A combination of good covenants, very long leases and strong tenant demand has put the leisure sector firmly on the map.”
