Standard Life invests in parking
Published: 08 November, 2010
Standard Life‘s UK Property Fund has bought the Rockingham Street car park in Sheffield for £13m
Standard Life has become one of the first UK institutions to invest in a standalone parking asset, buying the 531-space Rockingham Street car park in Sheffield from the Cordwell Property Group for £13m. Located to the west of the city centre and is in close proximity to Sheffield University and the office district, the the Rockingham Street car park includes a 9,300 sq ft retail unit at ground level. It is leased to Q-Park for 35 years and the lease provides for five-yearly rent reviews in line with Retail Price Index increases (subject to an annual 2.5 per cent collar and 5 per cent cap). The purchase price represents an average yield of 5.72 per cent in the first five years.
Nigel Chapman, fund manager of the UK Property Fund said: "We are delighted that we have been able to complete the purchase of such a high-quality, income producing asset. The Rockingham Street car park provides good diversification in terms of income, reduces the cash balance held in the Fund and provides an attractive yield for investors geared to RPI".
Montagu Evans represented Standard Life Investments in this acquisition and the Cordwell Property Group was represented by Town Centre Parking.
