M&G Real Estate has confirmed the acquisition of Parc Trostre retail park in Llanelli, Wales, for £156m from developer Stadium.
As revealed by Estates Gazette, M&G has bought the park for a 5% net initial yield. The off-market transac-tion was made on behalf of the M&G Property Portfolio.
Parc Trostre comprises 264,900 sq ft of retail space and 144,200 sq ft of mezzanine space across 34 shops. Alongside anchor tenants Marks & Spencer, Debenhams, Next, and Outfit, other major brands include River Island, TK Maxx, BHS, Asda Living, and Starbucks. The shopping park is also adjacent to a regionally domi-nant Tesco Xtra and benefits from full open A1 planning permission as a district centre within the Local Plan. The last major refurbishment including partial redevelopment took place in 2008, when Stadium ac-quired the park.
M&G property portfolio manager Justin Upton, said: “Parc Trostre in Llanelli is the dominant shopping park in South Wales. This off-market purchase continues our strategy of acquiring ‘best in class’ retail assets in locations with strong fundamentals and growing catchment areas.
“With a strong fashion-led occupier base and the ability to drive rental values via the introduction of new fascias and asset management, we believe the park will fit well into the existing high-quality retail warehouse portfolio within the fund.
“Given the well-publicised shifting trends within the retail sphere towards e-tailing and click and collect, as well as a more demanding consumer, we see the strongest retail parks only getting stronger given their abil-ity to cater for this seismic shift within the retail sector.”
Stockford Anderson acted for Stadium.
Annabel.Dixon@estatesgazette.com
