Orchard Street Investment Management has bought Hermiston Retail Park in Consett, County Durham, from Aviva Investors for £35.3m – a net initial yield of 6.25%.
The 157,000 sq ft retail park, which Orchard Street bought on behalf of St James’s Place UK, is anchored by a Morrisons supermarket and has a weighted average unexpired lease term of 16.3 years to expiry and 13.2 years to break.
Other tenants include B&Q, Carpetright, Poundland and Matalan. One of the units in the park is unlet.
Tom Chadwick, associate partner at Orchard Street, said: “This is a good-quality retail park let off affordable rents which serves the local catchment very well.
“At a 6.25% yield, the length and quality of the income is very attractive, especially when 50% of the income is attributable to the Morrisons supermarket, which has circa 20 years to lease expiry and RPI reviews.”
Morgan Williams advised Orchard Street, while Cushman & Wakefield advised Aviva.
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