Orchard Street Investment Management LLP, the specialist commercial property investment manager, has acquired Staples Corner Shopping Park, London from the Henderson UK Retail Warehouse Fund (HUKRWF) for £24.4 million (approx. €30 million), reflecting a net initial yield of 5.66%. The purchase was made on behalf of St James's Place property funds.
Staples Corner Shopping Park in London
Staples Corner provides 49,437 ft² of modern retail space and is currently let to a high quality line up of tenants including Argos, Dwell, Hobbycraft, Maplin, Wren Kitchens and TK Maxx (trading as Homesense), at an average rent of £29.50 (approx. €36.3 million) per ft². In addition, TK Maxx recently signed a ten year lease at £32.64 (approx. €40.2) per ft² and the Open A1 consent has been recently updated to include an allowance for food retailers.
The retail park is in an excellent location on the A5 Edgware Road, adjacent to the junction of the North circular and the M1 motorway.
Commenting on the acquisition, Barney Rowe, Partner at Orchard Street, said: "This is an excellent acquisition with a lot of potential for growth. Staples Corner's strong location, close to the junction with the M1 and North Circular, combined with its proximity to Brent Cross Shopping Centre and Brent Cross Retail Park, where rents are in excess of £50 (approx. €61) per ft², provide plenty of impetus for rental growth. The recent addition of food retailing to the planning consent will provide even greater flexibility to the tenant mix."
Michael Neal, fund Manager of HUKRWF at Henderson added: "The sale of Staples Corner Retail Park indicates the strength of demand that exists for well let and well located retail warehouse investments. The Fund has successfully completed its re-positioning strategy, taking the asset from a first generation retail park to a quality institutional product. Proceeds raised will be reinvested into the Funds extensive asset management pipeline."
Source: Tavistock Communications