UK & European Investments has acquired the Debenhams department store in Stratford-upon-Avon, West Midlands.
The company paid £12.6m – a sub 6% yield for the building. The deal has exchanged and completed following the Brexit outcome of the EU Referendum.
Advised by Knight Frank, the Debenhams department store is let for a further 18 years and the lease has fixed minimum uplifts throughout the term.
Jane Jeffery, UK acquisitions director at UK & European, said: “Our purchase complements our redevelopment plans and highlights our commitment to the redevelopment of Stratford-Upon-Avon’s town centre. This transaction also highlights our continued appetite to invest in strong locations, where we can add value.”
The acquisition adds to UK & European’s existing holding in Stratford-upon-Avon, with the department store adjoining Town Square/Bell Court Shopping Centre, which UK & European acquired off market in 2014.
UK & European is currently redeveloping the site to bring forward Bell Court, a new retail and leisure scheme comprising more than 70,000 sq ft of shops, restaurants and leisure space, anchored by a four-screen, 12,000 sq ft Everyman cinema.
The scheme is due to open in mid-2017.
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