Orchard Street Investment Management has acquired Hermiston Retail Park in Consett, County Durham, on behalf of St James’s Place UK for £35.3m from Aviva Investors.
The purchase price reflects a net initial yield of 6.25%.
The 157,000 sq ft scheme is anchored by a Morrisons supermarket with other retailers including B&Q, Carpetright, Pets at Home, Poundland, Matalan and Sports Direct. The retail park has a long weighted average unexpired lease term of 16.3 years to expiry and 13.2 years to break, and is let off rents between £10 and £17.68 per sq ft, with the supermarket lease providing five yearly RPI-linked uplifts. One of the units in the park is unlet.
Hermiston Retail Park benefits is located on the eastern side of the A692, less than half a mile south east of Consett town centre and adjacent to the new Consett Academy and Leisure Centre.
Orchard Street was advised by Morgan Williams; Cushman & Wakefield represented Aviva.
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