Property company Hammerson has invested in property in Telford, Shropshire by acquiring the Wrekin Retail Park, it was announced today.
A deal reported to be worth £42 million sees vendor Legal and General Property relinquish ownership of the site which it had held since its development in 1996.
With 145,313 sq ft of retail space, Wrekin adjoins an owner occupied Tesco Extra store and is fully let out to nine retailers including Asda Living, Boots, Homebase and Matalan.
David Atkins, CEO of Hammerson, commented: “Wrekin is an excellent asset with a strong anchor and wide planning consent.
“It has secure, reversionary income, and we aim to improve future returns through specific asset management initiatives including the introduction of further high quality brands and increasing the catering offer.”
The park is situated to the west of Telford town centre with access to the M54 and has a primary catchment of 270,000.
Gross retail income from the site is approximately £2.6 million per annum and average rents are around £18 per sq ft with an average unexpired lease term of over ten years.
Earlier this month Hammerson set out plans to increase its retail space at UK retail parks by around 322,917 sq ft in the coming year.
Atkins added: “Retail parks represent a significant part of our portfolio. They remain in demand from our occupiers and their customers thanks to their convenience, accessibility and affordability for tenants.”