M&G Real Estate announced the acquisition of Parc Trostre, Llanelli for £156 million (approx. € 190.5 mln), reflecting a net initial yield of 5.07%. This off market transaction was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and Justin Upton, and sees M&G Real Estate purchase from Developer Stadium, owner since the park was developed in 1988.
Parc Trostre is one of the premier shopping parks in the UK and the dominant retail destination in south west Wales with 264,921 ft² (approx. 24,612 m²) of retail space and 144,223 sq² (approx. 13,399 m²) of mezzanine space across 34 units. Alongside anchor tenants Marks & Spencer, Debenhams, Next and Outfit, other major brands include River Island, TK Maxx, BHS, Asda Living and Starbucks. The shopping park is also adjacent to a regionally-dominant Tesco Xtra and benefits from full open A1 planning permission as a District Center within the Local Plan. The last major refurbishment including partial redevelopment took place in 2008.
“Given the well-publicised shifting trends within the retail sphere towards e-tailing and click and collect, as well as a more demanding consumer, we see the strongest retail parks only getting stronger given their ability to cater for this seismic shift within the retail sector.”
Source: M&G Investments