British Land, one of the UK's largest retail property managers, has announced the acquisition of Drake Circus in Plymouth for £240 million (approx. 285 million).
Located in the middle of Plymouth, the 425,000 ft (approx. 39,500 m²) shopping center is the West Country's most popular shopping destination with an extensive catchment area covering Devon and Cornwall, and an annual footfall of nearly 19 million people.
The acquisition of Drake Circus further adds to British Land's prime retail portfolio in the UK and is in line with the Group's strategy of focusing on locations where it is able to provide its retail customers with high quality, accessible and flexible retail formats which are able to meet their current and future needs.
Drake Circus, which was opened in 2006, has over 70 retail units in modern retail formats with nearly three quarters of the space in units of over 7,500 ft². It is anchored by Primark, Marks & Spencer and Next with other key occupiers including established retailers such as Top Shop, New Look, Boots and H&M as well as newer fast-growing retail brands such as Cult/Superdry and Republic.
The purchase price represents a net initial yield of 6.0% with significant potential for income growth through asset management initiatives.
Chris Grigg, British Land's Chief Executive said: "Drake Circus further adds to our strong portfolio of high quality income generating retail assets in the best locations around the UK. We see significant potential to add value at Drake Circus over the coming years by leveraging our extensive asset management skills and retailer relationships."
Source: British Land