Glenbrook disposes of Preston retail park units in £3.6m off-market deal
The investment team at Manchester-based property firm Glenbrook has completed the off-market disposal of units 1 & 2 Mariners Way Retail Park in Preston to a US-based income fund for £3.62m.
Glenbrook says this reflects a net initial yield (NIY) of 6.3%. The property was let to the strong covenants of Pets at Home and Halfords, producing an annual rent of £244,124.
Mariner’s Way, which backs on to Preston Marina, is a popular out of town retail pitch anchored by Morrison’s, with other occupiers including B&M, DFS, SCS, McDonald’s, Starbucks, Carpetright and Bensons for Beds.
The sale was completed after the business plan was completed following the extension of both leases and the rebasing of rents, unlocking a full store refit by Pets at Home and latterly the purchase of the freehold from Preston City Council.
Glenbrook bought the long-leasehold on the site 18 months ago from Threadneedle UK as part of a £4.9m deal that also saw the company acquire St Mary’s Gate Retail Park in Rochdale.
Scott Griffiths, investment director at Glenbrook Investments, said: “From the moment we acquired the property in March 2021, we set about positive engagement with two high calibre tenants and Preston City Council.
“Step by step, we repositioned the property, culminating in a high quality, institutional asset. After turning the risk metrics around, we identified a strong buyer and both parties delivered as promised.”
This transaction follows a number of recent disposals to institutions by Glenbrook Investments including the £19.85m sale of three North West industrial investments to Schroders REIT and the £4.65m disposal to Threadneedle of Eastgate Retail Park in Accrington.
Glenbrook Investments continues to manage a portfolio of retail warehouse properties including Springfields Retail Park in Newcastle Under Lyme, St Mary’s Gate in Rochdale and Newport Retail Park.
OBI acted for the buyer and Petch and Co represented Glenbrook.