Leftfield buys scheme
Retail warehousing park sold in £21.5m deal
Park life: Caledonian is home to several retailers
Leftfield Properties, the UK commercial real estate investor, has acquired Caledonian Retail Park in Wishaw from DTZ Investors in a £21.15m deal, reflecting a net initial yield of 8.4%.
Caledonian Retail Park consists of 142,347 sq feet of purpose-built retail warehousing across eight units, including a garden centre and a car parking facility. The retail park also features 8,812 sq feet of industrial accommodation over six units, adjacent to the retail space, together with a 4,599 sq feet car wash facility fronting the A721 Glasgow Road.
The site is home to several leading retailers, including Matalan, The Range, Argos and B&M, and is soon to be supplemented by the opening of an Iceland Food Warehouse this month.
The asset has a total passing rent of £1.8 million per annum, with a weighted average unexpired lease term (WAULT) of 7.5 years. The business plan will focus on enhancing the tenant mix, lifestyle offerings and flow of the property.
Frank Hawkins, director at Leftfield Properties, said: “The acquisition of Caledonian Retail Park further enhances our strong position within the retail distribution and warehousing sector. As e-commerce and shopping habits evolve, assets such as Caledonian Retail Park, which offer convenience and value, become increasingly attractive.”
Stuart Orr, director at Savills investment team in Glasgow and advisor to Leftfield Properties, added: “Caledonian Retail Park makes for an excellent acquisition. It represents a rare opportunity to acquire a convenience-led retail scheme that enjoys strong fundamentals with good income and the ability to add value, all at a softer price than a secondary industrial estate.”
David Hyland, Senior Director at DTZ Investors, said: “The sale is in line with our strategy to reduce the fund’s exposure to this subsector of retail, and we are pleased to have agreed a sale in difficult trading conditions to a buyer who intends to continue the active asset management of the park.”
Stuart Spalding, Partner at Cushman & Wakefield, added: “The sale of Caledonian Retail Park demonstrates that there remains investor appetite for the retail sector where there is the opportunity to actively asset manage to respond to changing consumer behaviour.”
Leftfield was advised by Savills, and DTZ Investors were represented by Cushman and Wakefield.