Pillar is set to announce it has paid a record price for a retail park without open A1 consent, buying Castlemore Securities Fosse Plaza in Leicester for about £50m representing a yield under 6%.
The 12,634 sq m (136,000 sq ft) scheme, which is next to SPPs Fosse Park, is let to PC World, Currys, Carpet World, DFS, Maples and Harveys at rents between £20 per sq ft and £22 per sq ft. The last 929 sq m (10,000 sq ft) unit has been held back for letting at around £25 per sq ft.
Castlemore bought the site for £25m, itself a record price at the time, off projections that it was worth 6.5%, and is believed to have made a substantial profit.Pillar has built up one of the biggest portfolios of retail parks of any property company. Earlier this month it paid £42m for the Fort fashion-led retail Park in Edinburgh on a 5.65% yield.
Meanwhile, SPP is preparing to sell part of £90m Fosse Park in exchange for property and is in talks with three institutions. The park is the UKs most successful out-of-town retail warehouse scheme.
See Saturdays EG for more details.
