AshbyCapital, the private equity real estate firm, has sold its three-strong UK retail park portfolio for around £220 million to listed US investor Realty Income.
The portfolio, put together through three separate acquisitions between 2015 and 2019, comprises: Morfa Shopping Park, a 345,000-square-foot retail destination next to Swansea’s Liberty Stadium occupied by brands including Next, JD Sports and B&Q; Westside Shopping Park, an 120,000-square-foot park in Guiseley, northwest of Leeds, with retailers including Currys, Sports Direct, Next and TK Maxx; and Abbotsinch Shopping Park, a 265,000-square-foot retail park in Paisley, five miles southwest of Glasgow, anchored by B&Q and home to tenants including Dunelm and DFS.
The three are let to a total of 46 tenants.
Ashby, working with asset manager Quadrant, said it has proactively managed the parks to improve the offer for customers. As well as securing new tenants and working with existing brands to accommodate changing business needs and food and beverage 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. It said there have been virtually no voids across the three parks over the course of Ashby’s ownership.
Tom Smithers, property director at AshbyCapital, said in a statement: “We invested in these parks at a time when many investors had turned their back on physical retail. Yet the right type of retail, in strong locations and let to retailers with a multi-channel approach and a relevant offer still serves a significant role in communities across the UK.”
John Maddison, partner and head of asset management at Quadrant, said: “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."
Realty, led by former investment banker Sumit Roy, has been the most active buyer of long-lease supermarkets and retail parks in the UK since entering the market in 2019 when it bought 12 Sainsbury’s supermarkets, jointly owned by British Land, for £429 million. It has spent more than £2 billion buying supermarkets, DIY stores and more than 30 retail parks.
In the UK it most recently bought Arnison Shopping Park in Durham in the North East from CBRE Investment Management for £105.94 million.
Joiner Cummings advised Realty.