UK Commercial Property Trust ('UKCPT') managed by Ignis Asset Management has purchased Kew Retail Park from Henderson UK Retail Warehouse Fund for £31.35 million (approx. 35.1 mln.) representing a net initial yield of 6.89%.
UKCPT has purchased Kew Retail Park outside London.
Kew Retail Park tenants include Mothercare, TK Maxx, Gap, Next and Boots with rents ranging from £35.75 p/f² (£384.81 p/m²) to £37.75 p/f² (£406.34 p/m²) across five retail warehouse units extending to a total ground floor GIA of approximately 62,032 ft² (5,763 m²) together with 21,410 ft² (1,988 m²) of mezzanine space.
Robert Boag, Investment Manager from Ignis Asset Management said, "The purchase of Kew Retail Park represents the first acquisition for UKCPT. We are delighted to be able to purchase such a prime asset to complement the quality of the existing UKCPT portfolio which already benefits from a very strong covenant and lease expiry profile."
Michael Neal, Fund Manager of Henderson Global Investors Retail Warehouse Fund said, "Kew Retail Park has performed successfully for our Retail Warehouse Fund. Since its acquisition of the asset in 2002 the Fund has been successful in increasing total rents by over 60%. The sale shows encouraging signs for buyers of retail warehouses that there is liquidity in the market, despite the current market conditions".
The existing owner occupied M&S store of 76,682 ft² (7,124 m²) does not make up part of the sale.
GVA Grimley acted for UKCPT / Ignis Asset Management and Cushman & Wakefield and Morgan Williams acted for Henderson UK Retail Warehouse Fund.
Source: GVA Grimley