Helical has sold the Morgan Quarter in Cardiff to LaSalle Investment Management for £55m – a net initial yield of 5.9%.
The sale price is in line with Helical’s March 2016 book value and reflects a reversionary yield of 6.9%.
Helical acquired the former David Morgan department store and two Victorian arcades in 2005. Since then it has undertaken a substantial refurbishment programme, delivering more than 300,000 sq ft of retail and office space. Tenants include White Stuff, Jack Wills, Urban Outfitters and Molton Brown. An additional 56 flats were built above the retail space and have since been sold.
Helical investment director Duncan Walker said: “This significant sale, at an attractive yield, represents the eighth retail asset we have sold since March 2016. In line with our continued repositioning of the portfolio through value-enhancing disposals, our retail investments now comprise just a small number of retail warehouses. Our intention is to recycle the majority of the proceeds of this disposal into our London portfolio.”
Tom Rose, fund manager at LaSalle Investment Management said: “This acquisition corresponds to the Fund’s strategy of buying large, high quality, dominant assets as we continue to grow the portfolio. The Morgan Quarter is a landmark building within Cardiff City Centre providing a unique shopping environment that demonstrates our view of the future of high street retailing.”
Helical was advised by JLL; LaSalle was represented by Savills.
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