Development Securities today announced that it has completed the sale to Kames Capital of a portfolio of four investment assets at book value for £21.0 million (approx. €25.57 million), a yield of 7.5%.
The assets within the portfolio comprise: a retail parade on Bexleyheath high street in Kent; a shopping arcade in Carmarthen, Wales; a retail park in Port Talbot, Wales; and a retail warehouse in Crewe, Cheshire. As with the recent sale of a food store-anchored shopping centre in Winchester, the business plans for each asset within the portfolio are mature, with a number of lease regears, lettings, refurbishments and some redevelopment having been completed in order to improve the quality of the assets and enhance value. The largest asset within the portfolio in Bexleyheath was subject to a lease re-structuring with its largest tenant, Primark, in 2012 creating an income stream attractive to a long-term investor.
Matthew Weiner, Director, Development Securities said: “Within our investment portfolio, we are seeking to increase our focus on larger food store-anchored retail schemes and alternative assets where long-term income prospects are robust, values more resilient and income yields attractive. So far this year we have acquired a former hotel in Brighton pre-let to the YHA, a leisure asset in Altrincham and a foodstore-anchored shopping centre in Armagh. We are also actively pursuing a number of new opportunities and today’s disposal will allow us to recycle capital into further investment projects where we can create value through asset management and enhancement.”
Source: Development Securities