Orchard Street acquires Staples Corner Shopping Park from Henderson
Orchard Street Investment Management has acquired Staples Corner Shopping Park, London from the Henderson UK Retail Warehouse Fund for circa GBP24.4m, reflecting a net initial yield of 5.66 per cent.
The purchase was made on behalf of St James’s Place property funds.
Staples Corner provides 49,437 sq ft of modern retail space and is currently let to a high quality line up of tenants including Argos, Dwell, Hobbycraft, Maplin, Wren Kitchens and TK Maxx (trading as Homesense), at an average rent of GBP29.50 per sq ft. In addition, TK Maxx recently signed a ten year lease at GBP32.64 per sq ft and the Open A1 consent has been recently updated to include an allowance for food retailers.
The retail park is on the A5 Edgware Road, adjacent to the junction of the North circular and the M1 motorway.
Barney Rowe, partner at Orchard Street, says: “This is an excellent acquisition with a lot of potential for growth. Staples Corner’s strong location, close to the junction with the M1 and North Circular, combined with its proximity to Brent Cross Shopping Centre and Brent Cross Retail Park, where rents are in excess of GBP50 per sq ft, provide plenty of impetus for rental growth. The recent addition of food retailing to the planning consent will provide even greater flexibility to the tenant mix.”
Michael Neal, fund manager at Henderson, says: “The sale of Staples Corner Retail Park indicates the strength of demand that exists for well let and well located retail warehouse investments. The fund has successfully completed its re-positioning strategy, taking the asset from a first generation retail park to a quality institutional product. Proceeds raised will be reinvested into the fund’s extensive asset management pipeline.”
Jones Lang LaSalle advised Orchard Street and Morgan Williams advised Henderson Global Investors.