Aviva Investors has sold Beacon Retail Park in Milton Keynes to TIAA Henderson Real Estate for £29.25m, a net initial yield of 5.65%.
The freehold investment consists of eight shops totalling 84,497 sq ft and is let to tenants including TK Maxx, Boots and Sports Direct. It has a secure income with an average remaining lease term of circa.9.5 years.
The park is near the A5 and forms part of an out-of-town cluster, which includes MK1 Shopping Park and Rushmore Retail Park.
Marcus Wood, DTZ senior director of investment retail, said the retail warehouse investment market has been the busiest since the financial crisis, with trading volumes in the third quarter alone reaching £1.16bn – a quarterly record. Yet large volumes do not always mean high prices.
“With more stock available, investors can be more selective on the assets where top prices are being paid,” he said.
DTZ acted for Aviva Investors; Morgan Williams represented TIAA Henderson Real Estate.
