NewRiver REIT has bought Grays Shopping Centre in Essex for £20.2m.
The 177,300 sq ft shopping centre also comes with a 32,000 sq ft office building with permitted development rights for residential conversion.
The 4.7-acre site in the centre of Grays was bought at a net initial yield of 9.4% on the shopping centre element, with a site capital value of £40 per sq ft.
It was owned by Ellandi and Lone Star, which bought it as part of the Rockspring Property Investment Managers’ Tiger £260m portfolio of shopping centres.
The convenience-led mall is anchored by value and grocery retailers including Wilko, Poundland, Iceland and Peacocks. It has an average rent of £9.62 per sq ft and a weighted average unexpired lease term of 4.6 years
NewRiver chief executive Allan Lockhart said: “Grays Shopping Centre is a community asset with excellent asset management and development potential, acquired at a very attractive entry price, which is well below previously traded values and the residential residual value of the asset.
“This strategic acquisition means that we have invested over £150m so far in 2018 across our core sectors of community shopping centres, retail parks and community pubs, at an attractive blended initial yield of 12%.”
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