Deal concluded for £4.1m Bolton retail site
Preston-based property and construction company, the Eric Wright Group (EWG), has completed the £4.1m acquisition of a retail asset in Bolton town centre from Luxembourg-based Lunar Retail Sarl.
Located on Newport Street, the scheme comprises 19 retail units made up of both national and independent local retailers, generating a rental income of £550,000 per annum.
The deal achieved a net initial yield (NIY) of 12.5%.
Newport Street benefits from close proximity to the new £48m transport interchange. It now represents the main link between it and the remainder of the centre.
The announcement comes six months after Eric Wright Group set out its plan to grow its property portfolio to £100m over the next five years.
Speaking about the acquisition, group portfolio manager for Eric Wright Group, Patrick Naylor, said: “Whilst some investors may be hesitant in acquiring retail assets in the current market, we believe it can still present a worthwhile opportunity to secure substantial rental income in areas where good investment in the town centres exists and where there is a council in place which has adopted proactive attitude to development and regeneration.
“We successfully acquired the retail scheme at a competitive price and believe there are a number of asset management opportunities which will help us further increase the value of this asset.
“Recent lettings include two units, totalling 3,650 sq ft which have been taken by discount health and beauty store Savers. We also have a healthy level of interest in the two other vacant units which is testament to the popularity of this location.”
The acquisition and letting to Savers follows a £3m improvement programme to enhance the shop frontage and paving at Newport Street, including the installation of new lighting, seating and tree planting.
Cushman & Wakefield advised EWG, while Smith Price represented the vendor.