The long leasehold interest in The Lanes shopping centre in Carlisle has been put on the market by the receivers who are seeking offers of more than £15,740,000.
The sale price reflects a net initial yield of 11.60% and a capital value of £36/sq ft. The 437,331 sq ft centre generates a net operating income of more than £1.9m per annum and counts Primark, Next, Superdrug, New Look, River Island and Lush as tenants.
The Lanes has a weighted average unexpired lease term (WAULT) of 7.32 years with Primark – the top tenant by income – secured for another circa 16 years.
The scheme offers value-add asset management opportunities, including the reletting of the 107,848 sq ft former Debenhams. Terms have already been agreed with a major international retailer to take the ground floor of the unit, which spans 27,795 sq ft.
Savills is marketing the shopping centre on behalf of Jemma McAndrew and David Eden of Cushman & Wakefield, joint LPA/fixed charge receivers.
Toby Ogilvie Smals, director in retail investment at Savills, said: “The offering of The Lanes comes at a favourable time in the UK retail investment market; there are definitely more motivated buyers in the market than we have seen for some time. Investment volumes are recovering in line with confidence in retail and the desire to capitalise on record high yields.
“We are optimistic that there will be high levels of interest in The Lanes, as it offers rare opportunity to acquire an asset with a high-quality tenant mix alongside attractive asset management opportunities to drive the asset forward.”
