Property investor bags shopping park in £14m deal

A Worcestershire shopping park, with tenants including Boots, M&S and Next, has been acquired for £14.2m.

Custodian REIT has bought the 43,000 sq ft Evesham Shopping Park, a terrace of five units occupied by Next, M&S, Boots, Argos and Poundstretcher, with nearby retailers including Tesco, and B&M.

Richard Shepherd-Cross, managing director of Custodian Capital, said: “Both Next and Boots have recently extended their leases at the passing rent indicating their commitment to the location. B&M Bargains has recently constructed a 25,000 sq ft unit adjacent to the park, demonstrating that together with the Tesco Extra opposite this is the prime out of town location in Evesham. We are pleased to have secured this opportunity to acquire a very well-let park at a price which reflects a discount to recent market pricing.

“We believe well located, out-of-town, retail warehouse properties which, either do not compete with on-line retailing or are complimentary, through offering easy click and collect services will remain in demand despite the current restructuring of the retail market. This acquisition presented an opportunity to buy a prime asset, let to blue chip tenants, at a sufficiently high yield to support our fully covered dividend.”