Development Securities completes recycling of investment portfolio with acquisition of 17,187 m² convenience retail investment asset in Newcastle.
Development Securities announces that it has acquired the non-foodstore element of The Killingworth Centre, a convenience retail shopping center near Newcastle from Wm Morrison Supermarkets plc for £19.2 mln (approx. €25.5 mln) at an 8.27% net initial yield.
Completed in 2000, The Killingworth Centre is the principal retail destination within Killingworth, a suburban commuter town 5 miles from Newcastle City Centre. The covered shopping center is the principal retail and leisure destination for the local community, comprising a 6,782 m². Morrisons foodstore, a 6,503 m², Matalan and 28 further retail units totaling 9,848 m², which are let to a range of national and local operators including Poundworld, Wilkinson, Card Factory and Boots. The Morrisons foodstore will remain outside of Development Securities' ownership. The shopping center is currently fully occupied with a weighted average unexpired lease term of 5.1 years and offers a number of asset management opportunities.
Matthew Weiner, Development Securities PLC said: "The Killingworth Centre is a popular and well-located shopping centre that dominates Killingworth's retail provision meeting all the modern day requirements of the convenience-focussed consumer. This high-yielding asset has a stable occupier base and strong footfall which is driven by the Morrisons foodstore, one of the best performing stores within their portfolio and which will remain outside of our ownership."
Source: Development Securities Ltd