Legal & General Property has exchanged contracts to purchase the Dolphin Center in Poole, Dorset, from Wereldhave for £57.7 million (approx. 67 million), which reflects a net initial yield of 7.81%.
The shopping center asset comprises 430,000 ft² (approx. 40,000 m²) of covered retail space, arranged over three levels, and is anchored by Marks & Spencer, Primark, Boots, BHS and Beale Department store, and contains a total of 119 retail and leisure units. The Dolphin Center is Poole's main retail offer, providing over 60% of the retail space.
Mark Russell, Fund Manager to the Managed Fund at Legal & General Property, commented: "The quality of income currently enjoyed by the Fund affords an opportunity to move up the risk curve on a selective basis where we feel that value exists for secondary assets which are capable of being repositioned. The Dolphin Centre offers a resilient income return, supported by a diverse tenant base and affordable rents. There exist a number of options to increase dwell time and enhance the tenant mix, with numerous retailers not currently represented in the town."
Briant Champion Long represented Legal & General Property and Cushman & Wakefield acted for Wereldhave
Source: Legal & General Property