Lothbury Investment Management (LIM), on behalf of Lothbury Property Trust, has purchased off market the 65,000 ft² (approx. 6,038 m²). Congleton Retail Park in Cheshire for £16.39 million (approx. €19.92 million) at a net initial yield of 5.85%.
The freehold property is in a prime location, accessed from the A34 Clayton bypass, and is just under half a mile from Congleton town center. The park benefits from open A1 planning consent. Rents range between £12 and £18 per ft² with a total rental income of £1.015 million. The vendor is LondonMetric Property PLC.
Congleton Retail Park was originally developed in 2004, with a 2007 extension, and comprises a terrace of 10 fully let units. Tenants include Marks & Spencer, Boots, Halfords, Laura Ashley, Brantano and Carphone Warehouse. The park also sits adjacent to a Tesco superstore.
Mike Toft, senior fund manager and director of LIM, said: “This is an exceptionally good purchase for Lothbury, particularly given the poor supply of quality assets in today’s very demanding market. The park has open A1 consent, which is very much in line with our acquisition strategy. This new acquisition offers us very good options for rental growth while there is also potential for the development of a further two units, which we are exploring.
“While Congleton town centre has a limited offering, the park has a good mix of high quality tenants and the adjoining Tesco also helps attract good footfall from this largely affluent area of Cheshire.”
Long term, LIM say they will hold and develop this new asset and generate rental growth.
LIM were advised by Morgan Williams. LondonMetric were advised by Savills.