Orchard Street Investment Management has confirmed its acquisition of Staples Corner shopping park, NW2, from the Henderson UK Retail Warehouse Fund for £24.4m.
The acquisition, made on behalf of St James’s Place property funds, reflects a 5.7% net initial yield.
Staples Corner comprises 49,400 sq ft and is let to tenants including Argos, Dwell, Hobbycraft, Maplin, Wren Kitchens and TK Maxx at an average rent of £29.50 per sq ft.
TK Maxx recently signed a 10-year lease at £32.64 per sq ft, and the open A1 consent has been recently updated to include an allowance for food retailers.
Barney Rowe, partner at Orchard Street, said: “This is an excellent acquisition with a lot of potential for growth. Staples Corner’s strong location, close to the junction with the M1 and North Circular, combined with its proximity to Brent Cross shopping centre and Brent Cross retail park, where rents are in excess of £50 per sq ft, provide plenty of impetus for rental growth. The recent addition of food retailing to the planning consent will provide even greater flexibility to the tenant mix.”
Michael Neal, fund manager of HUKRWF at Henderson, added: “The sale of Staples Corner indicates the strength of demand that exists for well-let and well-located retail warehouse investments. The fund has successfully completed its re-positioning strategy. Proceeds raised will be reinvested into the fund’s extensive asset management pipeline.”
Jones Lang LaSalle advised Orchard Street; Morgan Williams advised Henderson Global Investors.
annabel.dixon@estatesgazette.com
