Leisure and retail park sold for £15.3m to investment firm
Investment firm NewRiver has bought a leisure and retail park in Barrow-in-Furness for £15.3 million.
The purchase of the Hollywood Retail & Leisure Park will offer NewRiver a number of opportunities to expand the park and increase revenue.
Plans include the immediate conversion of two existing units to introduce a 20,000 sq ft store let to Aldi on a 20 year lease with RPI rental increases.
The retail park has a weighted average unexpired lease term of 8.3 years, an affordable and sustainable average rent of £11.36 per sq ft, and the pricing represents an attractive net initial yield of 8.7%.
The acquisition includes a ten-unit 124,400 sq ft retail and leisure park with 665 free car parking spaces.
Aldi will join a line-up of occupiers of national retailers and leisure operators including TK Maxx, Currys PC World, Dunelm, Nuffield Health and a six-screen Vue cinema.
The park will be 100% occupied following the introduction of Aldi later this year.
The centre is located in the main retail park concentration in Barrow-in-Furness, a town with a large catchment and limited retail competition and will provide the primary discount food offer for the community following the introduction of Aldi.
Allan Lockhart, Chief Executive commented: “Hollywood Retail & Leisure Park is a high quality asset acquired for a very attractive entry price, and presents some immediate asset management and development opportunities, including the introduction of a new 20,000 sq ft Aldi, let on a long lease.
“Barrow-in-Furness has a large catchment, an ambitious Local Plan and favourable economic prospects, especially following the government’s recent recommitment to BAE Systems’ shipyard in the town.
“Since the start of this financial year we have invested over £140 million across our core sectors of community shopping centres, retail parks and community pubs at a blended initial yield of 13% demonstrating our disciplined approach to capital allocation and our commitment to deliver growing and sustainable cash returns to shareholders.”
