American real estate investment trust Realty Income Corporation continued its huge drive into UK retail parks and supermarkets by paying £20.7 million for the Withybush Retail Park in Haverfordwest, Pembrokeshire, winning it a CoStar Impact Award for Sale/Acquisition of the Year in Wales.
The acquisition from BS (British Steel) Pension Fund Trustee reflects a net initial yield of 7.96%. The 94,159-square-foot estate is let to blue-chip tenants like Marks & Spencer, Home Bargains, Next, Boots, TK Maxx, Sports Direct and Mountain House.
About the project: Withybush produces a rent of £1,773,926 a year with a weighted average unexpired lease term of 8.9 years, or 6.1 years including breaks.
What the judges said: Buyer exhibited confidence in mixed use retailing in one of the poorer locations in Wales. That was reinforced by more recent quality lettings.
This acquisition represents significant continued investment in this geographical location and with a very good yield resulting from the sale price.
They made it happen: Jack Lloyd and Miles Marten, who are director and principal of retail investment, respectively, at Avison Young.