DTZ Investors has acquired Anchor Retail Park in Mile End from Lothbury for £37m. The 3.2-acre site comprises three retail warehouse units offering 45,385 sq ft and a residential block of 11 houses.
The retail warehouses are fully let to Asda, Halfords and Currys with all leases expiring in 2025. DTZ Investors said the renewal prospects for the units were “strong with attractive market dynamics showing reversionary rents, a depth of occupier demand and limited direct competition”.
The houses are let as HMOs and there is headroom for rental growth over time. The site has just 35% single-storey cover and offers alternative use potential.
Ben Haller, director at DTZ Investors, said: “Anchor Retail Park is a great strategic fit so we are delighted with this deal to close the year. It’s rare to find underdeveloped plots in London capable of delivering attractive income returns alongside scope for significant capital enhancement. The optionality to pivot the site between existing use and alternative use is particularly appealing. The asset adds further quality to the fund’s retail warehouse weighting following numerous other acquisitions in recent years and with appetite for more.”
Chris Hampson, partner at HampsonWall, which acted for DTZ Investors on the deal, added: “Congratulations to DTZ Investors for the acquisition of this prime mixed-use asset within walking distance to the City of London. The manifold strengths of this asset were illustrated by a particularly competitive marketing campaign, which we are delighted to have supported DTZ Investors navigate it successfully.”
Savills represented Lothbury.
