An opportunity fund advised by Tristan Capital Partners has bought two retail parks from Hercules Unit Trust for around £45m.
European Property Investors Special Opportunities has bought the Hylton Riverside Retail Park near Sunderland and the Hatters Way Retail Park on the outskirts of Luton. Both assets will be managed by retail specialists Pradera.
The Tristan portfolio managed by Pradera in the UK currently consists of 11 retail warehouse parks including these two latest acquisitions.
The two assets cover 202,300 sq ft of lettable space in total over 23 units and provide parking for 954 vehicles. DFS Furniture, Aldi, Matalan, Argos Extra, Pets at Home and Costa are among the tenants. About 10% of the lettable space is vacant.
Peter Mather, managing director of investments at Tristan Capital, said: “These freehold assets provide modern retail warehousing accommodation that is located in established towns with large shopping catchments. Both parks provide secure and diverse income streams, with opportunities to improve this through leasing up a small element of vacancy, regearing and relocated existing tenants, and developing out a consented drive-thru restaurant and some new pods.”
Neil Varnham, managing director, Pradera, said: “Luton is undergoing change and establishing itself as a critical mass for retail warehouse and leisure. Sunderland, again, is in the process of reinvention; which has resulted in a strong employment market with millions of pounds being poured into the area boosting the local economy.”
The fund was advised by JLL and BLP on the transaction while Cushman & Wakefield acted for the vendor.
