Clearbell Capital has agreed the sale of Octagon Retail Park in Stoke-on-Trent to UK real estate investment firm Melford Capital for £22.525m.
The 137,899 sq ft retail park comprises nine stores and is fully let to household names including DFS, Sofology, Oak Furnitureland, Wren Kitchens, NCF and Grosvenor Casino.
Clearbell acquired Octagon in 2018 and has since undertaken a programme of active asset management focused on strengthening the park’s income profit and creating long-term value.
This includes recent lease regears with Wren Kitchens, Oak Furnitureland and Sofology, securing longer-term commitments from occupiers and agreeing improved rental terms across the scheme.
Toby Saul, investment director at Clearbell Capital, said: “Octagon is a strong example of our approach to active asset management. Since acquisition, we’ve focused on strengthening the underlying income and working proactively with occupiers to extend commitments to the park. We saw an opportunity to build on Octagon’s established position in furniture and bulky homewares, where physical stores remain particularly important to the customer journey. Retail warehousing has been a resilient part of the retail market in the face of growing competition from online channels.
“That has given the park a clear point of difference and supported its resilience as retail habits have continued to evolve. The recent regears are testament to the strength of the location and the quality of the occupier base, while putting the asset in a strong position for its next phase of ownership. The sale to Melford Capital represents the successful delivery of our business plan and a positive outcome following the work we’ve done to strengthen the asset.”
Clearbell was advised by KLM Real Estate and Melford Capital by Park Place Retail.
