NewRiver Retail, the AIM-listed retail property specialist set up by ex-Halladale duo David and Allan Lockhart, has made its second acquisition since its flotation last year with the £5.5m purchase of the Deeping Centre in Market Deeping, near Peterborough.
The food-anchored district centre has been bought from Westgate Properties Anglia, part of the Anglia Regional Co-operative Society, to show a net initial yield of 6.98 per cent and an equivalent yield of 8.01 per cent.
The Deeping Centre is anchored by a 27,000-sq ft Co-Op food store and a petrol station, together with 11 further retail units where tenants include the National Co-op chemist, Scrivens opticians and S&D Bookmakers. The Deeping Centre also provides the main car parking facilities for the town with 275 spaces.
The Co-Op has signed new 20-year leases for both the food store and the petrol station, representing 76 per cent of the total rental income, with the leaseback rent for the food store at £9.06 per sq ft.
At the same time NewRiver has bought a vacant site next to one of the entrances to the Deeping Centre for £275,000.
Allan Lockhart, director of NewRiver Capital, the property manager and adviser to NewRiver Retail, said: “The property offers excellent rental growth prospects and there are opportunities to upgrade and develop the retail offering. The investment is an opportunistic acquisition that fits exactly with our active asset management strategy.”
The deal follows NeweRiver's £5m purchase of a parade of shops in Wrexham town centre in December 2009.
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