Property group British Land has added Plymouth’s Drake Circus Shopping Centre to its retail portfolio.
The owner of Sheffield retail hub Meadowhall has acquired the 425,000 sq ft centre in the south-west of England for £240 million.
Drake Circus has an annual footfall of almost 19 million people and has been trading since 2006.
Anchored by fashion retailers Primark, Marks & Spencer and Next, the Plymouth-based shopping destination boasts more than 70 retail units occupied by, among others, Top Shop, New Look, Boots, Superdry and H&M.
British Land said in a statement today that the purchase price represents a net initial yield of six per cent and the property offers “significant potential for income growth through asset management initiatives”.
The company, which also owns Stephen’s in Hull, Eastgate Shopping Centre, Basildon and Surrey Quays Shopping Centre, recently reported a strong first half to its financial year, with profit before tax for the period up 12.4 per cent year-on-year to £127 million.
Reflecting on today’s acquisition, British Land CEO Chris Grigg said: “Drake Circus further adds to our strong portfolio of high quality income generating retail assets in the best locations around the UK.
“We see significant potential to add value at Drake Circus over the coming years by leveraging our extensive asset management skills and retailer relationships.”