ALMCOR has put a portfolio of retail parks on the market with an asking price of £100m.
The asking price represents a net initial yield of 7.75% and a capital value of £158/sq ft. The portfolio comprises Phase II, Clifton Moor Retail Park in York; Gallagher Retail Park, Scunthorpe; Cardiff Bay Retail Park, Cardiff; and Nova Scotia Retail Park in Blackburn.
There is 97% occupancy across the portfolio and a high tenant weighting in the DIY, food and discounter sectors, with B&Q, Aldi, Dunelm, B&M, Pets at Home and TK Maxx all tenants of the parks.
The average rent of £13.31/sq ft represents a circa 35% discount to the UK retail warehouse average and the portfolio has a long WAULT of circa seven years to expiries.
Peter Cooper-Parry, head of the portfolio Investment team at Savills, which along with Stockford Anderson has been appointed to market the portfolio, said: “This is a rare opportunity to gain a significant representation in the retail warehouse sector through a single portfolio transaction, acquiring four large and well-let retail parks in core locations.
“Various successful asset management initiatives have been implemented over recent years, with a focus on retaining existing tenants and letting vacant units. A buyer now has the opportunity of taking these schemes through the next cycle and driving rents from their current low base.”
