Development Securities has exchanged contracts to buy The Mall Shopping Centre in Armagh, Northern Ireland for £7.4m.
Built in 1998, The Mall is a covered shopping centre anchored by a 49,000 sq ft Sainsbury’s with a nine-year unexpired lease term that provides 65% of the total income.
In addition, the shopping centre includes 12,000 sq ft of shops let to a range of local and national retailers.
Net operating income is £748,000 pa with the purchase reflecting a net initial yield of 9.4%. The vacancy rate is low, at 4.4% by floor area.
Development Securities director Matthew Weiner said: “With a number of disposals having recently been made, we are continuing to recycle our capital into further real estate opportunities where we can add value.
“The Mall is an established and popular shopping centre in Armagh that offers good asset management and enhancement options and some scope for further development on site.
“Within our investment portfolio, we have a number of regional, foodstore-anchored retail schemes and this latest acquisition supports our activities in this market.”
nick.whitten@estatesgazette.com
