Development Securities announced today the sale of the freehold in Princess of Wales Centre in Dewsbury for a consideration of 26.5 million, reflecting a net initial yield of 5.25%.
The disposal of the property, purchased by Development Securities in 2004, will generate a net surplus slightly in excess of book value at December 2005.
Matthew Weiner, Investment Director at Development Securities PLC, said: Since acquiring the Centre in 2004, we have worked to improve the rental levels and have recently set a new tone for the scheme.
Having evaluated all the other potential asset management initiatives, we felt that the pricing in todays market, where the yields on secondary assets such as this have compressed significantly since 2004, do not reflect our return aspirations. We are continuing to focus on unlocking the latent value in our other convenience shopping centre assets where we believe significant development-led potential exists.
Source: Development Securities