Legal & General Property (LGP), on behalf of its Managed Fund, has exchanged contracts to purchase the Dolphin Centre in Poole, Dorset, from Wereldhave for GBP57.7m, reflecting a net initial yield of 7.81 per cent.
The shopping centre asset comprises 430,000 sq ft of covered retail space, arranged over three levels, together with open streetscape areas. The scheme is anchored by Marks & Spencer, Primark, Boots, BHS and Beale Department store, and contains a total of 119 retail and leisure units.
With a prominent central location, situated immediately adjacent to the bus and railway stations as well as linking directly to the town’s three main car parks, the Dolphin Centre dominates Poole’s retail offer, providing over 60 per cent of the retail space. Poole has an extensive catchment area, which is further boosted by its large tourist draw, and the scheme benefits from an annual footfall in excess of 11 million.
Mark Russell, fund manager to the Managed Fund at Legal & General Property, says: “The quality of income currently enjoyed by the fund affords an opportunity to move up the risk curve on a selective basis where we feel that value exists for secondary assets which are capable of being repositioned. The Dolphin Centre offers a resilient income return, supported by a diverse tenant base and affordable rents. There exist a number of options to increase dwell time and enhance the tenant mix, with numerous retailers not currently represented in the town.”
John Laker, managing director of Wereldhave UK, says: “The sale of the Dolphin Centre, Poole, is in-line with our plans to consolidate our place as a leading shopping centre investor in Europe and we look forward to exploring new opportunities."