Europa Fund V, managed by Europa Capital, and Sovereign Centros have bought the One Stop shopping centre and retail park, Perry Barr, Birmingham, from Standard Life Investments UK Shopping Centre Trust for £70m – a 7% yield.
The 380,000 sq ft asset is the second joint venture investment between Sovereign Centros and Europa, following the acquisition of 735,000 sq ft Corby Town Centre from Helical Bar in March 2015.
The asset is comprised of two elements: a shopping centre anchored by Asda, and a retail park. Key retailers include Marks & Spencer, Nike, Argos, Wilko, Boots, New Look, Sports Direct, Arcadia, Home Bargains and Poundland. Rents in the shopping centre range from £30 to £60 per sq ft in zone A, and from £15 to £22 per sq ft on the retail park.
Hugo Black, partner at Europa Capital, said: “We are delighted to have completed our second transaction with Sovereign Centros. We believe that Perry Barr offers Europa Fund V the opportunity to continue to enhance leasing performance of the asset, and benefit from high cash-on-cash returns in a sector that is attracting increasing interest from domestic and international institutional investors.”
Chris Geaves, chief executive at Sovereign Centros, added: “Sovereign Centros and Europa Capital are delighted to have acquired One Stop. The asset sits in an interesting area within Birmingham which is planned for significant change. We look forward to taking our plans for the asset forward.”
Europa Capital and Sovereign Centros were represented by Savills; Standard Life Investments was advised by Strutt & Parker.
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