CBRE Global Investors, the real estate investment firm, has acquired two retail units for a total of £18 million (approx. €20.85 million).
The first, a Tesco supermarket in Drayton, Norwich, has been acquired for £6.5 million (approx. €7.53 million). The property was recently refurbished and extended, and let on a 20-year lease for a rent of £18 psf, with the rent being reviewed every five years in line with RPI.
The second acquisition, for a different client, is the Meadowside Retail Park in Oxford. The property comprises a new retail warehouse scheme in the well-established retail warehouse hub on Botley Road, and is let on three new 15-year leases to Dunelm Mill, Halfords and Hobbycraft, with an average rent of £17.50 psf. CBRE Global Investors paid £11.47 million (approx. €13.29 million).
Ric Crane, Director, Separate Accounts at CBRE Global Investors, said: “These investments provide secure income on long leases at above average yields, and will provide solid returns for our clients”.
In the last year CBRE Global Investors has invested over £300 million (approx. €347.6 million) in UK retail properties on behalf of clients.
Source: Citigate Dewe Rogerson