St Modwen sells Rugby retail park for £17.4m

DEVELOPER and property owner St Modwen has sold its Technology Retail Park in Rugby for £17.4m, prior to its completion in September this year.

Aberdeen Asset Management has bought the 100,000 sq ft retail park on behalf of one of its clients.

Technology Retail Park forms a key part of Birmingham-based St Modwen’s £70m regeneration project for the area and was 100% pre-let before construction began last year.

Peter Rudd, senior development surveyor at St Modwen – which yesterday reported record results – said: “This sale is good news for the region. Representing a sub-6% yield, it demonstrates a confidence in the area following our ten year regeneration of the former Alstom site.

“The swift letting of the units, ten months before their completion, combined with this sale to investors from outside the Midlands is evidence of the strength of the development we have created and the region’s economy as a whole.”

Robert Cass, head of UK Transactions at Aberdeen Asset Management, said: “We are delighted to secure this well let retail park for our clients and build on the successful regeneration of the area carried out by St Modwen.

“We look forward to the opening of the scheme later in the year.”

Accessed off Technology Drive, built by St Modwen in 2010, the Technology Retail Park will be anchored by a 48,751 sq ft Homebase store when it opens in September and will also house other retailers such as Wickes, Pets at Home and Bensons for Beds.

St Modwen is regenerating the 82 acre site bounded by Leicester Road and Mill Road into a multi-million pound, mixed-use urban community. The site is now home to Warwickshire College and hundreds of homes are now under construction via Taylor Wimpey and St Modwen’s housebuilding brand St Modwen Homes.

St Modwen was represented by Morgan Williams while Aberdeen was represented by Colliers.