Orchard Street Investment Management has bought Altrincham Retail Park in Greater Manchester from the Crown Estate for £63m – a 6.96% yield.
Situated in the affluent commuter suburb of Altrincham, eight miles south-west of Manchester city centre, the retail park comprises 218,764 sq ft of lettable space across 13 retail warehouse units and two standalone restaurants. It also has 927 car parking spaces.
The park is fully let to tenants including TK Maxx, Homebase and McDonald’s. It has a WAULT of 5.2 years and the total rental income is £4.6m per year, reflecting an average rent of £21.40 per sq ft.
Tom Chadwick, associate partner at Orchard Street, said: “We are pleased to make this yield-accretive acquisition which presents immediate asset management opportunities to improve the WAULT and benefits from the affluent Altrincham catchment.”
The Crown Estate is prohibited from borrowing and so sales are an important part of raising capital for reinvestment across the business.
Geoff Ford, manager of the Crown’s regional portfolio, said: “Altrincham Retail Park has performed well and helped us to build critical mass in the retail sector. As an actively traded portfolio, sales such as this one play an important role in helping to raise capital for reinvestment across the business, where we continue to deliver brilliant shopping and leisure destinations.”
Orchard Street was advised by Savills; the Crown Estate was advised by Wilkinson Williams.
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