Mayflower Retail Park on the edge of Basildon town centre in Essex has been purchased by property company British Land, it was confirmed today.
In a deal worth £51 million, previous owner Scottish Widows Investment Partnership has offloaded the 153,000 sq ft of retail & leisure space for a net yield of 6.3 per cent, with one unit currently vacant at the site.
Valley Leisure Park in Croydon is moving in the opposite direction into Scottish Widows hands for a price of £28 million, representing a net yield of 7.1 per cent.
British Land has owned Valley Leisure Park, a predominantly leisure accommodation with eight cinema schemes, since 2000, when it purchased the facility for £21 million.
Charles Maudsley, Head of Retail at British Land, said: “This is another attractive acquisition for British Land which is in line with our strategy of recycling capital into assets with higher rental and value growth prospects.
“Mayflower is a popular trading location where rents are affordable and retailers trade well. By refreshing and modernising the park, we believe there are significant opportunities to attract new retailers to the scheme and grow rents.”
Retailers currently at the Mayflower centre include Homebase, Currys, Harveys, Mothercare and Next and it is situated adjacent to a Tesco superstore.
Since March 2010 £400 million has been spent on retail acquisitions by British Land and is one of the biggest operators of out-of-town developments in the UK.
In January British Land made the acquisition of Plymouth’s Drake Circus Shopping Centre adding to its existing portfolio of the Eastgate centre in Basildon, Stephen’s in Hull and the Surrey Quays Shopping Centre.
Maudsley added: “Along with Eastgate Shopping Centre in the heart of Basildon, we now own the town’s two most dominant retail assets where we anticipate future growth.”