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New River Retail buy The Deeping Centre for £5.5 million
NewRiver Retail Limited, has made it's second acquisition, The Deeping Centre, a district shopping centre located in the town of Market Deeping, near Peterborough, for £5.50 million, a similar sum to the Wrexham shopping centre it bought earlier.
The vendor is Westgate Properties Anglia Limited, part of the Anglia Regional Co-operative Society Limited. The deal was self-funded and reflects a net initial yield of 6.98% and an equivalent yield of 8.01%.
The Deeping Centre is anchored by a 27,000 sq ft Co-operative food store and a petrol filling station, together with 11 further retail units. The Deeping Centre also provides the main car parking facilities for the town with 275 dedicated spaces.
The Co-operative has signed new 20 year leases for both the food store and the petrol filling station, representing 76% of the total rental income, with the leaseback rent for the food store at £9.06 per sq ft. This provides both long term income security and strong prospects for increased rental growth. Other key retailers trading in The Deeping Centre include the National Co-op chemist, Scrivens opticians and S&D Bookmakers Ltd.
Additionally NewRiver has purchased an adjoining strategic vacant site at one of the entrances to The Deeping Centre for £275,000.
Allan Lockhart, Director of NewRiver Capital Limited, the wholly-owned subsidiary and property manager, and adviser to NewRiver Retail, said:
"Located in an affluent catchment area, The Deeping Centre benefits from strong footfall generated by the Co-operative food store. The property offers excellent rental growth prospects given the low leaseback rent with the Co-operative food store and the rental indexation within the PFS lease. In addition there are opportunities to upgrade and develop the retail offering, both within The Deeping Centre and the adjacent vacant land, by increasing the retailing provision and improving the tenant mix and overall quality of the shopping experience. The investment is an opportunistic acquisition that fits exactly with our stated active asset management strategy."
The vendor is Westgate Properties Anglia Limited, part of the Anglia Regional Co-operative Society Limited. The deal was self-funded and reflects a net initial yield of 6.98% and an equivalent yield of 8.01%.
The Deeping Centre is anchored by a 27,000 sq ft Co-operative food store and a petrol filling station, together with 11 further retail units. The Deeping Centre also provides the main car parking facilities for the town with 275 dedicated spaces.
The Co-operative has signed new 20 year leases for both the food store and the petrol filling station, representing 76% of the total rental income, with the leaseback rent for the food store at £9.06 per sq ft. This provides both long term income security and strong prospects for increased rental growth. Other key retailers trading in The Deeping Centre include the National Co-op chemist, Scrivens opticians and S&D Bookmakers Ltd.
Additionally NewRiver has purchased an adjoining strategic vacant site at one of the entrances to The Deeping Centre for £275,000.
Allan Lockhart, Director of NewRiver Capital Limited, the wholly-owned subsidiary and property manager, and adviser to NewRiver Retail, said:
"Located in an affluent catchment area, The Deeping Centre benefits from strong footfall generated by the Co-operative food store. The property offers excellent rental growth prospects given the low leaseback rent with the Co-operative food store and the rental indexation within the PFS lease. In addition there are opportunities to upgrade and develop the retail offering, both within The Deeping Centre and the adjacent vacant land, by increasing the retailing provision and improving the tenant mix and overall quality of the shopping experience. The investment is an opportunistic acquisition that fits exactly with our stated active asset management strategy."
Wed, 20th Jan 2010