Orchard Street Investment Management LLP has acquired The Beehive Centre in Cambridge from British Land for £109.2 million (approx. 137 million), which reflects a net initial yield of 5.25%.
The 238,000 ft² (approx. 22,110 m²) part open consented retail scheme was acquired by British Land in 1998. The scheme, located near Cambridge city centre, comprises 16 retail units and is anchored by a 70,000 ft² (approx. 6,503 m²) Asda food store. Other retailers include M&S Simply Food, Toys R Us, TK Maxx, Carpetright, Dreams, DW Sports Fitness, Next Home, B&M Retail, Maplin and HomeSense. The park is fully let at an average rent of £25 per ft² with an average lease length of 14 years.
Chris Bartram, Chairman at Orchard Street, said: "Opportunities to acquire major well let retail assets are rare, and in this case the property has the added advantage of being in a dominant position in one of the most vibrant and fast growing cities in the UK.
"We feel the property is a great addition to our client's portfolio which increases the volume of shopping centres and parks that we manage to £1.4 billion and we are sure that it will make a very positive contribution to Fund performance, as well as remaining a key element within the shopping offer of the city of Cambridge for the long term."
Charles Maudsley, Head of Retail for British Land, said: "The Beehive Centre is a great example of British Land's asset management capabilities. We have completed seven lettings in the past three years and built two new units. As a result, the park's entire original tenant line up has been completely replaced during our ownership. This sale also demonstrates the strength of institutional demand for quality retail parks."