15th May 2015 09:06
LONDON (Alliance News) - Highcroft Investments PLC Friday said it has acquired the Belgrave Retail Park in Wisbech, Cambridgeshire, England, a freehold retail warehouse park, for GBP8.5 million excluding fees.
The real estate investment trust has come to own the retail park through its Rodenhurst Estates Ltd subsidiary, which acquired B L (Wisbech) Ltd and its subsidiary Belgrave Land (Wisbech) Ltd from its six private shareholders.
B L (Wisbech) Ltd and Belgrave Land (Wisbech) Ltd own the 56,082 square foot retail warehouse park, which is fully let on average weighted unexpired lease terms exceeding ten years to Dunelm Group PLC, Halfords Group PLC, Carpetright PLC, Pets at Home Group PLC and Currys PC World, owned by Dixons Carphone PLC.
The property generates GBP620,585 in income per annum, according to Highcroft, giving a net yield of about 7.1%.
Rodenhurst Estates has drawn an additional GBP7.5 million fixed-term, non-amortising loan, secured on assets including the property being acquired, to fund the deal, with the remainder to be financed with the company's cash.
"Being able to do an off-market deal in the current climate was very unusual and we were happy to be in a position to take advantage of the situation. The average weighted unexpired term on the leases is attractive and the park offers further development opportunities," Chief Executive Simon Gill said in a statement.
Separately, the company said it is "well positioned" to generate more value for shareholders and said it is "actively seeking" new property acquisitions.
The company said the "investment market remains strong and competitive and we are disciplined in the application of our investment policy".
Highcroft shares were up 2.2% at 940.00 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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