Burford has bought a shopping centre and two retail parks from Hermes for £89m. The deal, which totals 57,620 sq m (620,000 sq ft) of space, reflects a yield of 7.1%.
The largest of the properties is the 28,345 sq m (305,000 sq ft) Fishergate Centre, in Preston, which produces a rent of £2.75m. This is anticipated to rise to £2.9m when outstanding rent reviews are settled. The scheme has parking for 850 cars and is anchored by Debenhams.
The deal also includes Euro Retail Park in Ipswich, and the 18,120 sq m (195,000 sq ft) Phase II Tunnel Retail Park, in West Thurrock. Euro Retail Park produces a rent of £1.05m and has one 740 sq m (8,000 sq ft) unit vacant. Phase II Tunnel Retail Park is fully let and generates a rent of £2.15m. Tenants includeUCI, Olympus Sports and Uno.
Burford chief executive John Anderson said: “It is our view that this portfolio provides ample scope for enhancing both income and capital.”
EGi News 9/3/99
