Land Securities is about to sell its Slough retail park to Capital & Regional fund The Junction.
The Junction is paying close to the £77m asking price, reflecting an initial yield of about 5.5%.
Industry sources said they were surprised the park had achieved its selling price. “Rents are already quite high and it has only bulky goods consent,” said one source. “It’s in a very wealthy area but there’s nothing clever you can do with it.”
Rents are above £35 per sq ft, but sources said they would not have to rise too much for The Junction to make a profit on its investment.
LandSec put the 154,000 sq ft (14,300 sq m) park on the fringe of Slough town centre up for sale in January through Savills.
Best bids were also called this week on F&C Asset Management’s Vale Gate retail park in Cardiff. The 85,000 sq ft (7,900 sq m) park is on the market for £28.5m, a 5.5% initial yield. F&C bought the park in April 2003 for £26m.
Montagu Evans advised The Junction.
References: EGi News 07/03/05
