Standard Life Investments has today confirmed the acquisition of The Gateway shopping park in Trowbridge, Wiltshire by its UK Property Fund.
Previously owned by the site’s developers Parkridge, the property has been bought by Standard Life for a reported £20.68 million.
The Gateway has six retail warehouses, with one currently vacant and the others occupied by retailers Next, New Look, Argos, Boots and Brantano, and totals 56,630 sq ft.
Nigel Chapman, Fund Manager of the UK Property Fund of Standard Life, said: “We are delighted that we have been able to increase the Standard Life Investments UK Property Fund’s exposure to prime retail real estate.
“The Gateway Shopping Park provides good diversification in terms of income, reduces the cash balance held in the Fund and provides an attractive yield for investors.”
Following the acquisition the cash position of Standard Life’s fund has reduced by 10.7 per cent and the purchase price represents an initial yield of 5.7 per cent.
Standard Life has property assets worth £9.8 billion in Europe, making it one of the largest property investors in the continent.
Unlike many retail warehouse developments the shopping park is located in the centre of town, with Trowbridge just 12 miles from Bath and 19 miles from Bristol.
Parkridge will retain the Courtyard element of the Gateway scheme which comprises mixed retail, restaurants and residential plots.