Legal & General acquires Stafford retail park for €41.7m (GB)

Legal & General acquires Stafford retail park for €41.7m (GB)

LGIM Real Assets, acting on behalf of its second UK Property Income Fund (“UK PIF II” or the “Fund”), has exchanged contracts to acquire Riverside Retail Park in Stafford from LXB Retail Properties for a total consideration of €41.7m (£36.8m), reflecting a net initial yield of 6.8%. This acquisition marks the final acquisition for UK PIF II.


As part of a linked transaction, the Legal & General Leisure Fund has entered a forward commitment to purchase the adjacent leisure development known as Waterfront for €17m (£15m), which will be anchored by Odeon cinemas.


The retail and leisure scheme was developed in 2016 and provides a total of 102,060 ft² of retail accommodation across 17 retail units. The anchor tenants are M&S and Primark, with a strong supporting tenant line-up including River Island, H&M, Outfit and JD Sports. There are currently four vacant units, two of which are under offer. The scheme benefits from a 1,025 space multi-storey car park located in the Waterfront and an additional 180 spaces underneath Riverside; both car parks are operated by the local authority. Waterfront will include six restaurants and a six-screen Odeon cinema. Nandos and Frankie & Benny’s are already trading. 


Following this latest acquisition, UK PIF II has acquired a balanced portfolio of 13 properties to date, totalling approximately €595.3m (£525m).  


Charlie Walker, Director of LGIM Real Assets and Fund Manager of UK PIF II, said: “This acquisition for UK PIF II is an excellent final addition for the Fund, allowing us to secure a high-quality new shopping destination in Stafford with an attractive income profile. We are looking forward to working with the retailers and continue to further enhance Riverside’s footfall, following recent new openings.” 

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