Capital & Regional plc, the co-investing property asset manager, has announced that it has completed the disposal of Morfa Shopping Park in Swansea to The Junction, the leading retail park owner and operator, for approximately €145 million (£105 million). This reflects a net initial yield of circa 4% and an equivalent yield of 4.7%.
Capital & Regional developed Morfa Shopping Park which comprises 265,000 ft² of mixed Open A1/Bulky Goods retail and is located adjacent to the new Liberty Football and Rugby Stadium in Swansea. Tenants on the park include TK Maxx, Boots, Next, New Look, ASDA George, Sports World, Argos, Peacocks, Brantano Footwear, B&Q, Frankie & Benny's, Brewers Fayre, Pizza Hut and KFC.
Claire Clark, the Fund Manager for The Junction Fund at Morley Fund Management commented: "A shopping park of this quality is highly sought after and is therefore a significant acquisition for The Junction. It enables us to increase our exposure to the high rental growth offered by Open A1 units and coupled with our recent secondary retail park sales we have successfully been able to rebalance our portfolio.
The Junction Fund now represents approx 8% of the UK Retail Warehouse market (as measured by IPD), and our investors have not only benefited from total returns of over 27% pa since inception, but have also seen the strong diversification benefits of investing in an active management fund of such scale."
Wilkinson Williams acted as independent property advisers for The Junction.
Source: Capital & Regional