Helical Bar has completed the acquisition of Huddersfield Retail Park, Beck Road in Huddersfield, West Yorkshire for £17 million, reflecting a net initial yield of 7.2%. The park has been acquired from Castlemore Securities in administration, acting through its asset managers, Cordatus Real Estate.
The 96,977 sq ft property, which benefits from an open A1 planning consent, comprises two terraces of three units on a 6.5 acre site offering 304 car parking spaces. The park is fully let to a strong selection of retailers, including Matalan, Dunelm, Aldi and B&M on long leases (the weighted average unexpired lease term is 12 years without breaks, 10 years including breaks). Five of the six units were let between 2009 and 2012 and so the rents are low (an average of circa £13.00 per sq ft), offering opportunities for future rental growth. In addition, a number of the leases have fixed increases.
Jack Pitman, Investment Director at Helical Bar said:-
“this was an opportunity to buy a well let retail park at a historically high yield for this type of asset, let off low rents set during the recession. The high yield provides a balance to the circa £53 million of lower yielding central London assets Helical has bought over the summer.”
Wilkinson Williams advised Helical Bar and Edgerley Simpson Howe advised the vendor.
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