Rockspring Property Investment Managers, on behalf of Rockspring UK Value 2 Fund, has acquired Clayton Square, a high street retail block in Liverpool for £38.4m, reflecting a net initial yield of 6.25%, from Infrared Capital Partners.
Located in central Liverpool, between Liverpool Lime Street and Liverpool Central Station, Clayton Square shopping centre is situated in a prime retail area close to Church Street and Liverpool One Shopping Centre and opposite St Johns Shopping Centre. The 13,024m2 (140,193ft2) retail scheme comprises 17 retail units, including one covered mall, one restaurant and a gym. Previously an underperforming retail centre, the asset has recently undergone an extensive refurbishment and repositioning by InfraRed Capital Partners and is currently 95% let to national retailers, including its anchor tenant, Boots along with Vision Express, Maplin, Clas Ohlson, Peacocks, Wildwood, Costa and easyGym.
The acquisition also marks 95% of the Fund’s total commitments having been invested four months before the end of its investment period. UK Value 2 assets include a retail park, six shopping centres, four regional offices, a speculative office development and two JVs focused on acquiring small industrial estates and strategic land. Recent acquisitions include the Walnuts Shopping Centre in Kent, and industrial assets in Greater London, Greater Manchester and Durham.
The Fund is the second in a sequential UK-only closed-ended real estate strategy with a core plus risk profile. It has an income focused approach which provides the bedrock of investor returns, with additional capital enhancement generated through active asset management. The Fund held its final close in February 2015, which, at eight months, was the fastest fundraise Rockspring has achieved in its 30 year history. Rockspring secured a total of £342m of equity from 11 investors for the Fund, which will have a lifespan of seven years.
Richard Bains, Rockspring partner and fund manager of the UK Value series, said: “The swift deployment of capital into the UK commercial real estate market on behalf of UK Value 2 is testament to Rockspring’s track record of sourcing core plus and value add assets across the UK. The acquisition of Clayton Square in Liverpool’s thriving city centre compliments the other retail assets within our portfolio and is in line with the Fund’s core plus risk profile. The repositioning of this asset has firmly re-established it as a prime retail asset within Liverpool allowing for rental growth moving forwards as well as potential to add value through further asset management initiatives.”
