A UK institutional investor has paid £25.2 million for UK-listed LondonMetric Property’s retail park in Kirkstall, Leeds following what the company’s CEO says has been “an uptick in investor interest” for well let and located retail parks.
LondonMetric developed the 120,000 sq ft Kirkstall Bridge Shopping Park in 2015 having acquired the site in 2011.
Following the recent re-letting of a 21,000 sq ft unit to The Range, the 18 unit park is fully let to occupiers including Home Bargains, Smyths Toys, Iceland, Pets at Home and JD Sports.
LondonMetric said the sale price represents a 15% premium to the book value at end March and realises a total return on cost of 27%.
The sale will complete at the end of September 2021.
“This is a strong trading retail park and its sale is in line with our strategy to divest our last few remaining multi let retail parks,” said LondonMetric CEO Andrew Jones.
He said the increased interest in retail parks is reflected in the sale price achieved.
“Our strongest conviction calls remain urban logistics and convenience-led long income and the sale proceeds will be allocated into these sub-sectors.”
LondonMetric was advised by Morgan Williams and Avison Young. The purchaser was advised by Bruce Gillingham Pollard.