Festival Leisure Park sold for £14.5m

FESTIVAL Leisure Park in Stoke-on-Trent has changed hands between property investors in a £14.5m deal.
 
Hermes Real Estate has sold the scheme to the Valad European Diversified Fund.

This reflects a net initial yield of 7%.
 
The 130,000 sq ft property adjacent to the A53 comprises a two storey leisure ‘box’ constructed in 1988, which is currently used as a ten screen cinema (Odeon), and a bowling alley (Tenpin).
 
Chris Taylor, CEO of Hermes Real Estate, said: “This sale is another milestone for Hermes Real Estate as we continue our portfolio diversification strategy through refocusing towards our core investments.

“We will continue to maximise returns through asset disposal at the right time in the market cycle.”
 
David Kirkby, Valad Europe’s chief investment officer, said: “This is the second leisure park we have acquired so far for the Valad European Diversified Fund and follows the acquisition of Five Ways Leisure Park in Birmingham earlier this month.

“Following the recent doubling of VEDF’s investment capacity to £800m, we continue to target good quality buildings with strong credit tenants and are prepared to take on leasing and repositioning risk, where appropriate.”
 
Lunson Mitchenall and MBH LLP represented Hermes Real Estate, while Valad Europe was represented by John Miles & Co.