Development Securities has sold Weeke local shopping center in Winchester, anchored by a Waitrose foodstore, for £23.3 million (approx. €28 million) to AMEC Staff Pensions Trustee Limited at a 4.85% yield and at £1.4 million in excess of book value as at February 28, 2013.
The sale follows the regear of Waitrose's lease, extending it to 35 years subject to five yearly RPI-linked rent reviews. Concurrently, at the Kingsland Shopping Centre in Thatcham, another retail scheme within Development Securities' investment portfolio, a regear has also been agreed with Waitrose to extend its lease by 10 years at its 42,000 ft² foodstore that anchors the development.
Located in a popular residential area, the site in Winchester was acquired by Development Securities in 2006 containing a disused petrol station and car showroom. Planning consent was subsequently secured to redevelop the site and create a mixed-use development that includes a 33,000 ft² foodstore, additional retail units, a medical center and four residential apartments. The foodstore was pre-let to Waitrose on a 20-year lease and the retail units were pre-let to national brands including Costa and Boots. In 2009 the development was completed, and the center continues to trade as a thriving retail destination.
Matthew Weiner, Development Securities said: "We first acquired Weeke shopping center as a redundant site and through redevelopment and asset enhancement have delivered a popular local retail scheme that benefits from a strong anchor tenant and a good complementary retail mix. Our ongoing asset management activities have driven significant value growth, most recently with the regear to Waitrose's lease. We are pleased to have now secured the sale of this high quality investment asset."
Source: Development Securities