Schroder UK Property Fund (SPF) has completed the acquisition of two key properties from vendor Corbo Properties in an off market transaction.
SPF has purchased Lemon Quay in Truro, Cornwall for GBP40m. The asset of over 165,619 sq ft is a multi-let retail parade in a good location benefitting from strong occupier demand and provides an opportunity to increase income. Tenants include well established household brands such as Marks and Spencer and Debenhams.
The second property purchased by SPF for GBP21m is the Holland Market and Winfrey Avenue Retail Parks in Spalding, a major Lincolnshire market town with an affluent catchment area. The property occupies a town centre location and comprises two adjacent retail warehouse parks, which provide a total of 94,714 sq ft of modern, flexible accommodation. The park is predominately let to strong national multiple retailers, with circa 98 per cent of the income secured to minimum or low risk tenants. Tenants include B&Q, Halfords, Wilkinson, Argos and Marks and Spencer. The passing rent is reversionary today providing a good platform for growth.
James Lass, fund manager of Schroder UK Property Fund, says: “We are delighted to have secured these two properties on an off-market basis. The improving economic environment is beginning to feed through into retailer confidence so we believe these purchases are well timed.
“The assets fit in with our long-standing strategy of acquiring well located real estate, let off low base rents where occupier demand is strong. We see numerous asset management opportunities in both properties.”