British Land has confirmed that it has exchanged contracts in a £30m deal to buy the leasehold interest in Green Lanes Shopping Centre in Barnstaple, Devon.
The 131,000 sq ft mall comprises 42 shops, anchored by Bhs and Wilkinson and is 99% let to tenants including Top Shop/Top Man, Peacocks, New Look, Mothercare, Monsoon, M&Co and La Senza.
Zone A rents range from £50 to £80 per square foot.
Green Lanes is the second shopping centre acquired by British Land in the last three months, and follows the £240m purchase of Drake Circus, a 570,000 sq ft shopping centre in Plymouth. It expands British Land’s shopping centre portfolio to 12 and brings the total retail acquisitions made by the group since March 2010 to £340m.
The purchase price represents an attractive net initial yield of more than 8%, with the scheme historically trading at investment yields as low as 5.5%.
Charles Maudsley, head of retail at BL, said: “This transaction provides a highly attractive income return supported by sustainable rental levels.
“Green Lanes more than meets our criteria of what makes a strong retail asset – dominance of the local area; extensive catchment; accessibility for shoppers; affordable rents; and attractive unit configurations.”
bridget.o’connell@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
