Leading property investor and developer, Development Securities PLC, announces that it has acquired a portfolio of assets in Manchester from regional developer Citybranch Limited for £11.1 million (approx. 13 million).
The portfolio includes the Chorlton Cross Shopping Centre in the affluent suburb of Chorlton-cum-Hardy as well as a smaller mixed-use asset on the Liverpool Road.
Chorlton Cross shopping center is situated on a ca. 2.5-acre site comprising a mixture of small retail units, office space and car parking. The asset offers a net initial yield of 8.44% with significant potential for repositioning or redevelopment within a market where there is strong retailer demand.
The acquisition was financed with £4.5 million equity and the debt facility was provided by The Cooperative Bank.
Matthew Weiner, Investment Director, Development Securities PLC said: "We continue to selectively deploy the proceeds of the £200 million of shareholder equity that we raised in 2009 and 2010 in secondary assets which offer attractive income returns and where we can apply our asset management and development expertise to create value.
"Manchester is a key market for us and the Chorlton Cross shopping center is well located within a wealthy suburb which is currently undersupplied with respect to its local retail offer."
Source: Development Securities