South African investor FPG’s UK arm has bought a retail park out of administration, for £10.6m.
The 44,748 sq ft Gallagher Retail Park in Huddersfield initially had a price tag of £10.2m, representing a net initial yield of 7.25%.
Its tenants include Aldi, M&S, McDonald’s, Home Bargains and Pets at Home.
Marcus Worthington Properties, the Preston-based company behind the retail park, fell into administration last year.
Alex Sweetman, director at Avison Young, which advised the park’s administrators at Deloitte, said the park received a “healthy level of interest from both private and institutional investors, particularly during the Covid-19 outbreak, demonstrating the confidence that remains within the property investment market for well-let retail assets”.
Ian Whittaker, associate at Ryden, which acted for FPG, said: “These have been really challenging times for everyone, and for my client to secure funding and commit to such a significant investment in the current climate is a testament to themselves and shows their ability to perform in even the most testing of markets.”
FPG’s UK business was set up in 2013. Its portfolio mainly comprises retail parks and logistics warehousing.
FPG said that it will “continue its search in the wider market to diversify its portfolio and meet its growth objectives”.
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