Pension fund sells Darlington North retail park
British Steel pension fund has disposed of Darlington North retail park in Darlington through Avison Young. The freehold investment was sold to a private wealth fund for £9.915m, reflecting a net initial yield of 6.20 per cent, ahead of the asking terms.
The 41,993-sq ft retail warehouse park, which opened in July 2016, is fully let to Aldi, Iceland, Poundland, Jollyes, Card Factory, Barnardo’s and F&B operators Greggs, Subway and KFC with a WAULT of 11.7 years to lease expiry.
The property provides an annual rental income of £655,527pa and the Aldi lease benefits from five-yearly rent reviews, linked to RPI, with collars and caps of 1.0 and 3.0 per cent.