Hermes Real Estate has completed the sale of Festival Leisure Park, Stoke to the Valad European Diversified Fund for £14.5 million (approx. €18.1 million), reflecting a net initial yield of 7%.
The 130,000 ft² (approx. 12,077 m²) property comprises a two storey leisure box constructed in 1988, which is currently used as a ten screen cinema (Odeon), and a bowling alley (Tenpin). Adjacent to the A53, with 420 car parking spaces, the site is part of the largest retail and leisure district in the Stoke conurbation.
Chris Taylor, CEO of Hermes Real Estate, said: “This sale is another milestone for Hermes Real Estate as we continue our portfolio diversification strategy through refocusing towards our core investments. We will continue to maximise returns through asset disposal at the right time in the market cycle.”
David Kirkby, Valad Europe’s Chief Investment Officer, commented: “This is the second leisure park we have acquired so far for the Valad European Diversified Fund and follows the acquisition of Five Ways Leisure Park in Birmingham earlier this month. Following the recent doubling of VEDF’s investment capacity to £800 million (approx. €998.4 million), we continue to target good quality buildings with strong credit tenants and are prepared to take on leasing and repositioning risk, where appropriate.”