DTZ Investment Management has purchased the Northgate Quarter in Oxford from AIB Investment Management for £31.6m – a 5.2% net initial yield.
As revealed by Estates Gazette, the Northgate Quarter freehold was brought to the market for £29.7m – a 5.5% yield. It includes Tesco and Sainsburys as tenants as well as a Debenhams on the upper floors, which is the city’s main department store. The scheme produces a rental income of £1.7m pa.
David Hyland, director at DTZ IM, said: “The purchase of Northgate Quarter aligns with the fund’s strategy to invest in prime retail parades, in the best UK towns and cities. The asset provides excellent core income from the supermarkets, but also offers some real asset management angles that can be exploited immediately.”
MMX Retail acted for DTZIM; Strutt & Parker represented AIBIM.
annabel.dixon@estatesgazette.com
