Europa Fund V, managed by Europa Capital, and Sovereign Centros have acquired One Stop shopping centre and retail park, Perry Barr, Birmingham from Standard Life Investments UK Shopping Centre Trust.
The asset, just over three miles from the centre of Birmingham, sits on a site of 28 acres and was constructed in 1990. The 380,000 sq ft asset is the second joint venture with Sovereign Centros, following the acquisition of 735,000 sq ft. Corby Town Centre from Helical Bar Plc in March 2015.
The acquisition price of £70 million reflects an initial yield of 7%. The asset is comprised of two elements, a shopping centre anchored by Asda and a retail park.
Key retailers include Marks and Spencer’s, Nike, Argos, Wilko, Boots, New Look, Sports Direct, Arcadia, Home Bargains and Poundland. Rents in the shopping centre range from £30 per sq ft ZA to £60 per sq ft ZA and £15 per sq ft to £22 per sq ft on the retail park.
Hugo Black of Europa Capital said: “We are delighted to have completed our second transaction with Sovereign Centros. We believe that Perry Barr offers Europa Fund V the opportunity to continue to enhance leasing performance of the asset and benefit from high cash on cash returns in a sector that is attracting increasing interest from domestic and international institutional investors.”
Chris Geaves of Sovereign Centros said: “Sovereign Centros and Europa Capital are delighted to have acquired One Stop. The asset sits in an interesting area within Birmingham which is planned for significant change. We look forward to taking our plans for the asset forward.”
Europa Capital and Sovereign Centros were represented by Savills and Standard Life Investments by Strutt & Parker.