The asset is located just over 3 miles from the centre of Birmingham and sits on a 28 acre site, which was constructed in 1990 and sold to Standard Life on completion. The 380,000ft² asset is 13% vacant by rental value and is Europa Capital’s second joint venture with Sovereign Centros, following the acquisition of 735,000ft² Corby Town Centre from Helical Bar Plc in March 2015. The acquisition price of £69m reflects an initial yield of 7%.
The asset is comprised of two elements, a shopping centre anchored by Asda and a retail park. Key retailers include Marks and Spencer, Nike, Argos, Wilko, Boots, New Look, Sports Direct, Arcadia, Home Bargains and Poundland. Rents in the shopping centre range from £30 per/ft² to £60 per/ft² and £15 per/ft² to £22 per/ft² on the retail park.
Hugo Black, Partner at Europa Capital said: "We are delighted to have completed our second transaction with Sovereign Centros. We believe that Perry Barr offers Europa Fund V the opportunity to continue to enhance leasing performance of the asset and benefit from high cash on cash returns in a sector that is attracting increasing interest from domestic and international institutional investors”.
Chris Geaves, of Sovereign Centros, said: “Sovereign Centros and Europa Capital are delighted to have acquired from Standard Life. The asset sits in an interesting area within Birmingham which is planned for significant change. We look forward to taking our plans for the asset forward”.
Europa Capital and Sovereign Centros were represented by Savills and Standard Life Investors by Strutt & Parker.