Private equity group Topland has bought Marks & Spencer’s flagship Cardiff store from M&G Real Estate’s Life Fund.
The group bought the store, at 72-76 Queen Street, for just over £23.2m. This represented a net initial yield of 6.4% and a capital value of £194 per sq ft.
M&G put the store up for sale via Knight Frank with a £33.2m price tag in 2019, as previously reported by EG.
It is let to M&S for a further 135.5 years. The retailer has occupied the building for more than 80 years.
David Sanderson of Topland said: “This investment follows a number of recent Topland Group acquisitions across all sectors. We are buying counter-cyclically in retail where we see value, we have also been successful in the highly competitive industrial sector and are securing opportunities both on and off-market.”
Sanderson said that the group is in legal discussions on five acquisitions, including a build-to-rent scheme, office refurbishments and standing income-producing assets.
He said: “We have significant cash reserves for further investment and will be active over the next 12 months.”
Bruce Gillingham Pollard advised Topland.
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