Orchard Street, the specialist commercial property investment manager, has completed the acquisition of Kingsway Retail Park in Derby for €68.5m (£57.3m), reflecting a net initial yield of 5.75%. The asset was acquired on behalf of St James’s Place Property Unit Trust from TH Real Estate.
Kingsway Retail Park is the prime and dominant retail park in Derby, located two miles west of the city centre. Completed in 1995 and updated and reconfigured since, the 13,820m² open-air scheme is currently fully let to 16 first-class retailers, including Next, TK Maxx and Marks & Spencer, and holds a WAULT of 6.25 years.
Mark Cruddas at TH Real Estate said: “The sale of Derby concludes the capital recycling initiative that commenced in Q4 2015 with the purchase of Borehamwood Shopping Park. Having completed the extensive business plan the Retail Warehouse Fund is able to crystallise its profit with the asset producing 9.4% pa total return over the hold period against the benchmark of 6.6%.”
Orchard Street was advised by Savills, while the vendor was advised by Morgan Williams.
