A Corporate Pension Fund client of Savills Investment Management, represented by Savills, has sold Heeley Retail Park in Sheffield to Mayfair Capital for £17.167 million, reflecting a net initial yield of 7.15%.
A Corporate Pension Fund client of Savills Investment Management, represented by Savills, has sold Heeley Retail Park in Sheffield to Mayfair Capital for £17.167 million, reflecting a net initial yield of 7.15%.
The retail park is fully let and comprises six units, a Costa Coffee pod and 289 car parking spaces, generating an annual income of £1.31 million. Heeley Retail Park provides 77,170 sq ft (7,176 sq m) of retail space and is let to Boots, Next, Pets at Home, Matalan, Currys PC World and Poundworld.
The park is situated two miles to the south west of Sheffield city centre on the A61 in an established pitch for out of town retailing, with nearby occupiers including B&M, Halfords and Lidl.
Lucy Winterburn, Director of Investment at Savills Investment Management, comments: “We are delighted to have completed the sale of Heeley Retail Park, which was very much a legacy asset in our client’s portfolio. Sale proceeds will be reinvested into new speculative and pre-let development opportunities predominantly in the industrial sector, where we continue to see strong performance potential.”
Jos Seligman, Transaction Manager at Mayfair Capital adds: “Heeley Retail Park is the third purchase for the Mayfair Capital Thematic Growth Fund which launched in January and targets core plus and value add returns based on technological innovation, demographic and infrastructure changes. Discount retail warehousing in large city centres are a focus for the fund on account of market pricing, their complimentary nature to online sales and dense populations providing underlying residual value. The focus in Sheffield will be to proactively manage through lease events at rebased rental levels.”
Mayfair Capital was advised by Montagu Evans.