Glenbrook Investments has bought Eastgate Retail Park in Lancashire for £2.8m, reflecting a 12.7% net initial yield.
The 35,434 sq ft Accrington retail park was previously owned by the Foresters Friendly Society, according to Land Registry filings. It has passing rent of £382,710 per annum.
It is occupied by tenants including Home Bargains, Pets at Home and The Food Warehouse.
The location also has consent for an additional unit measuring around 16,000 sq ft.
It was initially presented for sale with an asking price of £5.2m in 2018.
Chris Lloyd, investment director at Glenbrook, said: “Despite the negative rhetoric around retail in general, retail warehousing has positive metrics and some very resilient tenants that have continued to trade well throughout lockdown.
“The locations of these parks have great connectivity and values are underwritten by alternative uses, such as trade park industrial and last mile logistics. We hope and plan to acquire more assets of this nature over the next 12 months.”
Robert Millington at Cheetham & Mortimer, which advised Glenbrook, said the asset generates “an attractive income return while presenting numerous opportunities to add value in the future”.
“Schemes of this size and nature have become increasingly dominant within the local shopping hierarchy and we expect this trend to continue,” he said.
Aston Rose advised the vendor.
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