CBRE Global Investors has acquired two retail units for a total of GBP18m.
The first, a Tesco supermarket in Drayton, Norwich, has been acquired for GBP6.5m. The property was recently refurbished and extended, and let on a 20-year lease for a rent of GBP18 per sq ft, with the rent being reviewed every five years in line with RPI.
The second acquisition, for a different client, is the Meadowside Retail Park in Oxford. The property comprises a new retail warehouse scheme in the well-established retail warehouse hub on Botley Road, and is let on three new 15-year leases to Dunelm Mill, Halfords and Hobbycraft, with an average rent of GBP17.50 per sq ft. CBRE Global Investors paid GBP11.47m.
Ric Crane, director, separate accounts at CBRE Global Investors, says: “These investments provide secure income on long leases at above average yields, and will provide solid returns for our clients.”
In the last year CBRE Global Investors has invested over GBP300m in UK retail properties on behalf of clients.