Hammerson plc has acquired Drakehouse Retail Park, Sheffield, for ÃÂ£60.2 million, inclusive of costs, from The Junction Limited Partnership. The transaction reflects a net initial yield of 5.4%, upon settlement of outstanding rent reviews and an equivalent yield of 5.9%. Drakehouse Retail Park, at 20,500 mÃÂ², is the largest retail park in Sheffield, and occupies a seven hectare site approximately seven miles south east of the city centre and serves a catchment population of over a million.
The scheme provides 18 units and 834 car park spaces. Retailers represented include Focus DIY, Co-op Homestore, Currys, Comet and Carpetright. In addition there is a McDonaldÃ¢â¬â¢s Drive-Thru restaurant. The scheme benefits from having a partially open planning consent.
The retail park was built in 1997 and is expected to generate a total annual rental income of approximately ÃÂ£3.3 million on settlement of outstanding rent reviews. The average unexpired lease term is 19 years.
The acquisition will be financed from HammersonÃ¢â¬â¢s existing resources.
John Richards, Chief Executive of Hammerson, commented:
Ã¢â¬Å The retail park sector continues to perform very strongly. At Drakehouse Retail Park there are further opportunities to improve the income through rent reviews and the introduction of new tenants. We continue to make good progress in our retail parks business and this acquisition follows successful recent planning decisions, with consent secured for Cyfarthfa Retail Park, Merthyr Tydfil and St. OswaldÃ¢â¬â¢s Park, Gloucester.Ã¢â¬Â
Hammerson was represented by FPD Savills. The vendor was represented by Montagu Evans.