UK & European Investments (“UK & European”) has acquired the Debenhams department store in Stratford-upon-Avon for €15.1 (£12.6m), reflecting a sub 6% yield. The deal has exchanged and completed following the Brexit outcome of the EU Referendum.
The acquisition adds to UK & European’s existing holding in Stratford-upon-Avon, with the department store adjoining Town Square / Bell Court Shopping Centre, which UK & European acquired ‘off market’ in 2014.
UK & European are currently redeveloping the site to bring a new and improved retail and leisure space to Stratford-upon-Avon. Bell Court will deliver over 6,503m² (70,000ft²) of shops, restaurants and leisure space, anchored by a four-screen, 1,115m² (12,000ft²) Everyman cinema, opening to the public mid 2017.
Advised by Knight Frank, the department store is let for a further 18 years and the lease has fixed minimum uplifts throughout the term.
Jane Jeffery, UK Acquisitions Director of UK & European Investments, commented, “Our purchase complements our redevelopment plans and highlights our commitment to the redevelopment of Stratford-Upon-Avon’s town centre. This transaction also highlights our continued appetite to invest in strong locations, where we can add value.”
Charlie Barke of Knight Frank said, “We were pleased to be able to follow up our initial purchase of the shopping centre with this strategic acquisition for our clients. UK & European Investments have very exciting plans in Stratford and this is exactly the sort of retail transformation that many of our towns are crying out for".
UK & European Investments is a Pan-European value-add real estate investor. The business invests and develops across all real estate sectors (commercial and residential), currently investing in 11 different countries with a particular focus on the UK, Germany, Spain, USA, France and Poland.
