Acting on behalf of Local Retail Fund, property consultants Alder King and Waypoint Asset Management have acquired the long leasehold of a parade of shops and premises on Gloucester Business Park for £1.9million.
The purchase of Block A, Whittle Square, reflected a net initial yield of 7.65 per cent.
Local Retail Fund is an unlisted fund managed by Waypoint Asset Management on behalf of Schroder Property Investment Management. and invests in assets ranging from stand-alone convenience stores through to neighbourhood parades.
Its latest acquisition at Whittle Square is adjacent to a Tesco Extra food store. The parade was constructed three years ago and comprises six retail units with tenants including Costa Coffee, Subway, Greggs and Dominos Pizza. The total income is £153,859 per annum and the average term to lease expiry is circa 13 years.
Mike Riley, joint managing director of Waypoint Asset Management, commented: "We are pleased to have completed this acquisition for Local Retail Fund. This asset is in line with the Fund's strategy to invest in local centres and neighbourhood parades. The property is let to a mix of tenants and provides long-term asset management opportunities."
Gemma-Jane Ogden of Alder King said: "Block A Whittle Square is an attractive retail parade investment owing to its excellent location on the established Gloucester Business Park and its close proximity to a substantial food store. The mix of tenants and the length of the unexpired lease terms were in line with Local Retail Fund's requirements."
Rapleys advised the vendor, the Chubb Common Investment Fund.