Cordea Savills has agreed terms with Simons Group to fund the North Lincolnshire Shopping Park, Doncaster Road, Scunthorpe, for circa £23.5 million (approx. €28 million) on behalf of the Bishopsgate Long Term Property Unit Trust . This latest acquisition brings the total value of completed investments on behalf of the Fund to over £225 million (approx. €268.8 million) since the start of 2013.
The 67,975 ft² (approx. 6,315 m²) out-of-town retail park comprises four multi-let units, of which three are already let. The asset has a strong tenant line-up, including Debenhams, Marks & Spencer and Boots. The acquisition price reflects a net initial yield of 6.1%.
Patrick Lowther, Portfolio Manager, commented: “The Fund is delighted to be able to partner with Simons Developments in order to fund what will be a ‘best in class’ modern retail park with an enviable tenant line-up. We forecast that values in the out of town market for retail warehousing will continue to improve, driven by a weight of money and lack of stock. The leases demonstrate the upbeat trading forecasts that retailers have for this location.”
Philip Hodgkinson, Deputy Chairman, Simons Group, added, “We are very much looking forward to working with Cordea Savills for the first time. Against a challenging market, Simons continues to deliver development opportunities which provide new retail space for our customers whilst providing quality stock to the market and significant investment into the local economy. The scheme at North Lincolnshire Shopping Park is built on the cornerstone of our ongoing relationships with M&S, Debenhams and Boots".
Cordea Savills was advised by Savills.
Source: Cordea Savills