Cardiff Bay sold for £5.4m
Published: 23 May, 2011
DTZ has successfully sold Dunleavy Drive retail and leisure scheme in Cardiff Bay on behalf of Swansea based property company, Compton Group.
Henderson Global Investors has purchased the investment for £5.4m on behalf of its £180m UK Property Fund. The price reflects a net initial yield of 6.2 per cent.
The Dunleavy Drive scheme was constructed in 2007 and is home to Frankie & Benny’s, Greggs, Majestic Wine, Appletree Nursery, Ski Lodge, and the UK’s first ‘drive-thru’ Starbucks.
DTZ is also the letting agent at the scheme. Andrew Gibson, senior surveyor in DTZ’s retail agency team in Cardiff, said: “The quality of this modern retail and leisure scheme has attracted a good mix of tenants which benefit from a busy trading location with good access in the ever improving Cardiff Bay area.”
Originally designed as a restaurant destination scheme, the mix of tenants has evolved over the last two years. The scheme comprises 18,854 sq ft of floor space in total in five detached buildings with generous on-site car parking and external ‘al-fresco’ eating areas.
Owen Jones, head of investment at DTZ in Cardiff, said: “Following a competitive and thorough marketing campaign, Henderson emerged as the front runner to purchase the scheme. The strength of the purchase price from one of the UK’s main property fund managers demonstrates a show of confidence in the Cardiff property market for well located assets, with a mix of local as well as national tenants.
“Our client Compton Group is very pleased with this successful outcome. The price achieved reinforces the fact that well located property with an attractive tenant mix and good growth prospects can still achieve strong pricing, even in the context of a challenging commercial property investment environment.”
DTZ is the letting and sales advisor on the scheme. Green & Partners acted for Henderson.
