17th Apr 2014 08:52
LONDON (Alliance News) - Development Securities PLC Thursday said it had exchange contracts to acquire The Mall Shopping Centre in Armagh, Northern Ireland for GBP7.4 million.
The covered shopping centre was built in 1998 and is anchored by a 49,000 square foot Sainsbury's foodstore with a nine-year unexpired lease term that provides 65% of the total income, the company said. It also includes 12,000 square feet of retail space let to a range of local and national retailers.
The Mall's net operating income is GBP748,000 a year with a net initial yield of 9.43%. The vacancy rate is low at 4.4% by floor area.
"With a number of disposals having recently been made, we are continuing to recycle our capital into further real estate opportunities where we can add value," Development Securities Executive Director Matthew Weiner said in a statement. "The Mall is an established and popular shopping centre in Armagh that offers good asset management and enhancement options and some scope for further development on site".
Development Securities shares were up 1.2% at 235 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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