Legal & General Investment Management (LGIM) has sold Meridian Leisure Park in Leicester to Greenridge Opportunities LP for £25m, in a deal reflecting a yield of 8.50%.
The 155,071 sq ft park sits on a 19.8-acre site south west of the city centre, directly off the Leicester Ring Road (A563). It is anchored by Vue Cinemas and Hollywood Bowl. Other occupiers include David Lloyd, Nando’s and Five Guys.
The park is 99% let, with more than half the income benefiting from rental indexation or fixed uplifts and a term certain of approximately 12 years.
Bik Bhuptani, partner at Greenridge, said: “We are excited about the addition of Meridian Leisure Park to our portfolio. This acquisition perfectly aligns with Greenridge Opportunities LP’s strategy of investing in high-quality, income-generating assets. The park’s robust tenant mix and prime location underscore our commitment to identifying and capitalising on unique opportunities in the leisure sector. We see significant potential for value creation and look forward to enhancing the park’s offering, further cementing its status as a key leisure destination in the East Midlands.”
Andrew Ferguson, senior fund manager of the leisure fund at LGIM, added: “The leisure sector has been tested over the past few years in the face of wider economic challenges, particularly within the cinema market – however, good quality, well managed leisure schemes in prime locations continue to remain resilient; Meridian Leisure Park is testament to this.
“As the sector is stabilising once again, with a positive pipeline of films over the next three to five years, we hope and expect to see a strong rebound for the cinema market. We’re pleased to have completed this transaction with Greenridge, allowing us to re-invest for new opportunities.”
Edward George, partner at Montagu Evans, which advised LGIM on the deal, said: “This is an exceptional transaction and an important benchmark for demonstrating liquidity in the sector. LGIM is one of a number of institutions looking to free up capital for new opportunities and portfolio-wide improvements, including ESG commitments. It sets the tone for a number of leisure park transactions expected over the next 12-18 months as the market recalibrates.”
Savills advised the buyer on the off-market transaction.
