UK & European Investments (“UK & European”) has acquired the Debenhams department store in Stratford-upon-Avon for £12.6m, reflecting a sub 6% yield. The deal has exchanged and completed following the Brexit outcome of the EU Referendum.
The acquisition adds to UK & European’s existing holding in Stratford-upon-Avon, with the department store adjoining Town Square / Bell Court Shopping Centre, which UK & European acquired ‘off market’ in 2014.
UK & European are currently redeveloping the site to bring a new and improved retail and leisure space to Stratford-upon-Avon. Bell Court will deliver over 70,000 sq ft of shops, restaurants and leisure space, anchored by a four-screen, 12,000 sq ft Everyman cinema, opening to the public mid 2017.
Advised by Knight Frank, the department store is let for a further 18 years and the lease has fixed minimum uplifts throughout the term.
Jane Jeffery, UK Acquisitions Director of UK & European Investments, commented:
“Our purchase complements our redevelopment plans and highlights our commitment to the redevelopment of Stratford-Upon-Avon’s town centre. This transaction also highlights our continued appetite to invest in strong locations, where we can add value.”
Charlie Barke of Knight Frank said:
“We were pleased to be able to follow up our initial purchase of the shopping centre with this strategic acquisition for our clients. UK & European Investments have very exciting plans in Stratford and this is exactly the sort of retail transformation that many of our towns are crying out for”.