Pillar Property Investments has increased the value of its retail park portfolio to £165m with the acquisition of the Fleetsbridge Retail Park in Poole, Dorset, and St James Retail Park in Harrogate, north Yorkshire.
The group is paying Hermes £12m for the Fleetsbridge Retail Park. The purchase price is due to be paid in two and half years time with an interim annual rent payable at a rate of 8%. Pillar will work with Hermes until the year 2000 to redevelop and let the 12,634 sq m (136,000 sq ft) park which is located on 4.4ha (11 acres) just north of Poole town centre.
Pillar believes the scheme, which was built in 1988, will benefit from improvements to the property and to the tenant mix. Lease surrenders have already been secured from key tenants and lettings with three anchor tenants have been agreed.
In a separate deal Asda St James sold the 8,082 sq m (87,000 sq ft) St James Retail Park in Harrogate to Pillar for £9.8m. The sale price reflects a 7.2% yield. The 3.1 ha (7.8 acre) site, four miles east of Harrogate town centre, is let to five tenants including MFI, Carpet Depot and Maples. The scheme has open A1 planning consent.
Wilkinson Williams and Harvey Spack Field acted for Pillar on the Poole deal while Colliers Erdman Lewis advised Hermes. Churston Heard acted for Pillar on the St James acquisition while Hill Woolhouse represented Asda St James.
EGi News 10/04/97
