Redefine International, a UK REIT confirmed that it has completed on the acquisition of the Weston Favell Shopping Centre, Northampton for £84 million (approx. €99.7 million).
Weston Favell is an enclosed shopping center situated on the edge of Northampton. The property comprises approximately 307,763 ft² (approx. 28,590 m²) of retail accommodation arranged over two floors with 1,150 free parking spaces. Anchored by one of the largest Tesco Extra supermarkets in the UK (156,987 ft² (14,584 m²), with a 14.3 years unexpired lease term), the center has a total of 56 retail units and seven kiosks let to a variety of national and local retailers producing a net rental income of £6.4 million p.a. (€7.6 million p.a.)
The key investment attractions include the center’s dominance in the wider catchment, the lack of supermarket competition in the north east of Northampton and the strength of the Tesco covenant which accounts for 53% of the net passing rent. The current void rate is 3.4% by ERV and 2.2% by area.
Commenting, Mike Watters, Chief Executive of Redefine International, said: “Delivering a net initial yield (after acquisition costs) of 7.2%, this shopping center provides strong income whilst presenting a number of asset management opportunities.”
Source: Redefine International