British Land JV sells retail park in Leamington for £72m

3rd Jun 2014 07:28

A joint venture between British Land's part-owned Hercules Unit Trust (HUT) and The Crown Estate has sold the Leamington Shopping Park to Ignis UK Property Fund for £72m.The sale, by the 50:50 joint venture named Gibraltar Limited Partnership, represents a net initial yield - a key measure in the property sector measuring the annualised rents as expressed as a percentage of a portfolio's valuation - of 4.4%.British Land, which owns a 59.8% stake in HUT, also acted as Gibraltar Limited Partnership's property adviser and said it transformed the asset from a traditional bulky goods retail park into a fashion-led shopping outlet."The scheme was extensively refurbished in 2009 and almost every unit has been either re-let or reconfigured," the property group said.The original line-up of shops at the Leamington Shopping Park included DIY and furniture shops such as MFI, Harveys and Focus. However, occupiers now include anchor Debenhams, Outfit, Next, New Look, Mamas & Papas, Boots, Clarks and Frankie & Benny's."We have realised significant value at Leamington Shopping Park by transforming it into an attractive and successful shopping destination," said British Land's Head of Retail, Charles Maudsley."That value has been recognised by the market and the sale demonstrates both the strong UK institutional demand for the right type of product and confidence in the prospects for the retail occupational market."BC