Redefine International, a UK real estate investment trust (REIT), has completed on the acquisition of the Weston Favell Shopping Centre, Northampton for GBP84m.
Weston Favell is an enclosed shopping centre situated on the edge of Northampton.
The property comprises approximately 307,763 sqft of retail accommodation arranged over two floors with 1,150 free parking spaces.
Anchored by one of the largest Tesco Extra supermarkets in the UK (156,987 sq ft, with a 14.3 years unexpired lease term), the centre has a total of 56 retail units and seven kiosks let to a variety of national and local retailers producing a net rental income of GBP6.4m p.a.
The key investment attractions include the centre’s dominance in the wider catchment, the lack of supermarket competition in the north east of Northampton and the strength of the Tesco covenant which accounts for 53 per cent of the net passing rent. The current void rate is 3.4 per cent by ERV and 2.2 per cent by area.
Mike Watters, chief executive of Redefine International, says: “Delivering a net initial yield (after acquisition costs) of 7.2 per cent, this shopping centre provides strong income whilst presenting a number of asset management opportunities.”