The Charities Property Fund, managed by Savills Investment Management, has bought a retail asset close to the Metro Centre in Gateshead for £33.7m.
The 150,000 sq ft property is let to Sports Direct and The Range from Tesco and has an unexpired term of 16 years to break, at a net initial yield of 5.6%.
Angy Benitz, portfolio manager of the Charities Property Fund, said: “This purchase was a rare opportunity to acquire a prominent, sizable and income-producing site next to an IKEA and close to the Metro Centre.
“The length, security and RPI nature of the income is attractive, particularly as the investment is underpinned by a valuable residual position given the prime location and open A1 consent including food.”
Staunton Whiteman advised Savills Investment Management. Savills advised the vendor.
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