AshbyCapital sells retail park portfolio in UK for £220 mln
AshbyCapital, the private equity real estate firm, has sold its retail park portfolio, consisting of three assets in Swansea, Leeds and Glasgow, to Realty Income Corporation, a US firm, for over £220 million.
“We invested in these parks at a time when many investors had turned their back on physical retail,” said Tom Smithers, property director, AshbyCapital. “Having focused on quality shopping parks that dominate in their local areas and having invested to drive significant improvements and increase rental returns, we’re pleased to sell this portfolio against an improved backdrop for the retail sector.”
The portfolio, put together through three separate acquisitions between 2015 and 2019, includes Morfa Shopping Park, an award-winning 34,000 sq m development next to Swansea’s Liberty Stadium. It is occupied by brands including Next, JD Sports and B&Q.
Also included is Westside Shopping Park, a 12,000 sq m park in Guiseley, northwest of Leeds, with retailers including Currys, Sports Direct, Next and TK Maxx.
Abbotsinch Shopping Park, a 26,000 sq m retail park in Paisley, close to Glasgow, also forms part of the sale. The park is anchored by B&Q, as well as Dunelm and DFS.
Together the three assets are let to a total of 46 tenants.
The sale follows an £82.5m refinancing of the three retail parks, put in place last summer from Deutsche Hypo. The three-year loan included a capex facility and was used to refinance an existing debt.
Since acquiring the parks Ashby, working together with asset manager Quadrant, has improved the offer for customers. As well as securing new tenants and working with existing brands to accommodate changing business needs and F&B upgrades, improvements have included landscaping and public realm projects, the installation of new facilities such as free water bottle refill points and site-wide wi-fi, as well as EV charging.
“This sale concludes a successful nine-year partnership with AshbyCapital that adds to our strong track record of working with investors to drive the performance of out-of-town retail parks,” said John Maddison, partner and head of asset management, Quadrant. “We leave all three assets as exemplars for the sector, in far better physical and occupational condition than when we first started working on them, and strongly positioned for ongoing success.”
The buyer, Realty Income Corp, entered the UK market in 2020 and since then has amassed a significant retail park and food store portfolio, targeting acquisitions in the sector that yield between 7% and 8%.
