DTZ Investors drops £37m on Anchor retail park

DTZ Investors has bought the 139,827 sq ft Anchor retail park in Mile End, E1, from Lothbury Investment Management for £37m. The park is one of few remaining inner-London retail parks, situated in Zone 2 just over a mile from the City of London.  The site occupies 3.2 acres and comprises three retail warehouses totalling 45,385 sq ft, let to Asda, Halfords and Currys and a terrace of 11 four-bedroom houses. The retail provides an income of £1.3m, with the homes delivering an annual rent of £475,200. All three leases on the retail are due to expire next year. However, DTZ Investors said that renewal prospects for the space were strong with “attractive market dynamics showing reversionary rents, a depth of occupier demand and limited direct competition”. Ben Haller, director at DTZ Investors, said:  “It’s rare to find underdeveloped plots in London capable of delivering attractive income returns alongside scope for significant capital enhancement.  “The optionality to pivot the site between existing use and alternative use is particularly appealing.  The asset adds further quality to the fund’s retail warehouse weighting following numerous other acquisitions in recent years and with appetite for more.” The park was put up for sale in September as a redevelopment opportunity. Pre-application discussions have been held with Tower Hamlets Council for redevelopment as either build-to-rent or student accommodation. Plans drawn up for BTR by Allford Hall Monaghan Morris comprise 257 homes and 11,593 sq ft of commercial space. The PBSA plans, prepared by Maber, would see the provision of 440 beds and 66 affordable homes, totalling 206,689 sq ft, plus 9,957 sq ft of retail space. HampsonWall acted for DTZ Investors; Savills advised Lothbury.