News: Brockton and Pradera buy Rotherham retail park
The specialist joint venture partnership of Brockton Capital and Pradera has bought The Foundry Retail Park in Rotherham, South Yorkshire, for around £22.1m.
Formerly known as the Great Eastern Retail Park at Parkgate, it is home to DFS, CSL and The Range.
The UBS Triton Property Fund, who bought the 154,000 sq ft retail park in 2006, refurbished the properties in 2010 and recently secured a seven-year lease with B&M Stores at a rent of £269,500.
The Foundry had an annual rental income of £1.7m and the purchase reflects a net initial yield of around 9.25%. Cushman & Wakefield acted for the vendor. Morgan Williams acted for the Brockton Pradera partnership.
Neil Varnham, a director at Pradera, said: "This park is ideally located close to the town centre and has the strongest concentration of furniture and furnishing retailers, which we aim to build upon in the forthcoming period to deliver an even stronger offer."
3.2 acres on the site has potential for further retail and leisure development. Over the road, Ron Hull recently purchased and flattened a former car showroom.
Charlie Desmond, associate partner at Brockton Capital, said: "The Foundry is the dominant bulky goods and value destination for Rotherham and its surrounding catchment.
"The purchase provides the joint venture with a high running yield and we believe the current rental tone is both affordable and sustainable. In addition, there is further scope to extend the park and introduce food and beverage pods. We intend to continue to be acquisitive in the sector."
The joint venture partnership was established to selectively acquire a portfolio of retail parks throughout the UK and jointly committed sufficient equity to enable a gross portfolio value of approximately £250m to be acquired.
The purchase of The Foundry is the second acquisition following the purchase of the Cardiff Gate Retail Park.
Pradera website
Brockton Capital website
Formerly known as the Great Eastern Retail Park at Parkgate, it is home to DFS, CSL and The Range.
The UBS Triton Property Fund, who bought the 154,000 sq ft retail park in 2006, refurbished the properties in 2010 and recently secured a seven-year lease with B&M Stores at a rent of £269,500.
The Foundry had an annual rental income of £1.7m and the purchase reflects a net initial yield of around 9.25%. Cushman & Wakefield acted for the vendor. Morgan Williams acted for the Brockton Pradera partnership.
Neil Varnham, a director at Pradera, said: "This park is ideally located close to the town centre and has the strongest concentration of furniture and furnishing retailers, which we aim to build upon in the forthcoming period to deliver an even stronger offer."
3.2 acres on the site has potential for further retail and leisure development. Over the road, Ron Hull recently purchased and flattened a former car showroom.
Charlie Desmond, associate partner at Brockton Capital, said: "The Foundry is the dominant bulky goods and value destination for Rotherham and its surrounding catchment.
"The purchase provides the joint venture with a high running yield and we believe the current rental tone is both affordable and sustainable. In addition, there is further scope to extend the park and introduce food and beverage pods. We intend to continue to be acquisitive in the sector."
The joint venture partnership was established to selectively acquire a portfolio of retail parks throughout the UK and jointly committed sufficient equity to enable a gross portfolio value of approximately £250m to be acquired.
The purchase of The Foundry is the second acquisition following the purchase of the Cardiff Gate Retail Park.
Pradera website
Brockton Capital website
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