NewRiver Retail has bought Cuckoo Bridge Retail Park, Dumfries, from British Land for £20.2m.
The price reflects a net initial yield of 7.05%.
The retail park is 100% occupied and comprises 130,000 sq ft across seven retail units with a weighted average lease expiry of 8.3 years and 550 parking spaces.
The asset is anchored by Homebase and includes Dunelm, Poundstretcher, Laura Ashley, B&M, KFC and Costa Coffee.
The acquisition has been funded using existing cash resources. Retail warehouses now account for 12% of NewRiver’s £1.2bn portfolio.
Allan Lockhart, NewRiver property director, said: “Cuckoo Bridge provides everyday necessities for the local population and presents opportunities to generate returns by driving income and capital growth through asset management.”
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