Legal & General IM Real Assets has agreed to buy Riverside Retail Park in Stafford for £36.8m, its final acquisition for its UK Property Income Fund II.
It has bought the 102,060 sq ft park from LXB Retail Properties at a price that reflects a net initial yield of 6.8%.
As part of a linked transaction, the Legal & General Leisure Fund has entered a forward commitment to purchase the adjacent leisure development known as Waterfront for £15m, which will be anchored by Odeon.
The park includes 17 shops let to tenants including M&S, Primark, River Island, H&M, Outfit and JD Sports. There are currently four vacant units, two of which are under offer.
Waterfront will include six restaurants and a six-screen Odeon cinema. Nando’s and Frankie & Benny’s are already trading.
UK PIF II has a seven-year life span and delivers a core/core-plus risk strategy and includes investment from Legal & General Group and the fund team, with a total buying power of £610m, including gearing.
It has now acquired a balanced portfolio of 13 properties totalling around £525m, including Priory Court and the Lewis Building in Birmingham; The Overgate Centre in Dundee; The Grafton in Cambridge and FC200, west London.
Charlie Walker, director of LGIM Real Assets and fund manager of UK PIF II, said: “This acquisition for UK PIF II is an excellent final addition for the fund, allowing us to secure a high-quality new shopping destination in Stafford with an attractive income profile.
“We are looking forward to working with the retailers and continue to further enhance Riverside’s footfall, following recent new openings.”
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