Hermes sells Exeter Retail Park for £42m

Hermes Real Estate has sold its Exeter Retail Park as it continues to focus on refurbishment and extension opportunities across the rest of its UK retail warehouse portfolio.   The fund manager has sold its the park to CIT for £42.05m in a deal which reflects a net initial yield of 6.19% on the contracted income with five rent reviews currently outstanding.    Tenants at the retail-warehouse park which comprises 10 units on a total of 114,542 sq ft include Currys, Comet, Argos, Carpetright, Staples, Harveys, Allied Carpets, McDonalds and Carphone Warehouse.   In addition, at the start of this year shoe retailer Brantano signed a 15 year lease to trade from the park.   Russell Black of Hermes said: “The sale of Exeter Retail Park is in line with our business strategy and will allow the team to fully focus on major refurbishment and extension opportunities that are on-going within the Hermes Retail Warehouse Portfolio at The Maybird Shopping Park, Stratford-Upon-Avon, Tottenham Hale Retail Park, North London and the Pipps Hill Retail Park, Basildon.”   CIT’s Richard Bains said: “We are delighted to have concluded this purchase, which provides a defensive income stream at an attractive initial yield, coupled with the potential to add value in the short to medium term”   MBH LLP advised CIT. DTZ acted for Hermes.   bridget.oconnell@rbi.co.uk