M&G buys Bridgend outlet

Published:  27 November, 2015

M&G Real Estate buys TH Real Estate’s Bridgend designer outlet for £115.5m

M&G Real Estate has acquired Bridgend Designer Outlet for £115.5m from TH Real Estate, reflecting a net initial yield of 5.75 per cent. The acquisition was made on behalf of M&G Property Portfolio.

Anchored by an Odeon cinema, Next, Gap, Marks & Spencer, Adidas and Clarks, the 244,080-sq ft designer outlet is multi-let to a leading line up of over 90 designer, premium and high street brands generating rent of £7m pa. Other tenants include Kurt Geiger, Lacoste, Ted Baker and Fat Face. A wide range of restaurants and cafes are also located within the scheme, with a Premier Inn and Sainsbury's next door, providing consumers with a comprehensive shopping and leisure experience.

McArthurGlen will continue to manage the centre which achieved an annual footfall of 3.8 million last year, benefitting from its location in the most densely populated area in South Wales just two miles north of Bridgend town centre, mid-way between Cardiff and Swansea at Junction 36 of the M4.

M&G fund manager Fiona Rowley said: "Bridgend Designer Outlet has benefitted from five per cent year-on-year turnover growth during the last five years and, as a result, rental growth is set to continue rising, aided by significant levels of inward investment into the region. This fully supports our strategy for acquiring prime retail assets in strategic locations to provide our investors with long-term income growth revenue."

TH Real Estate will use the proceeds of the sale will be used to further develop and enhance both Cheshire Oaks Designer Outlet and Swindon Designer Outlet to continue to drive outperformance for the Henderson UK Outlet Mall Fund.

Morgan Williams advised M&G Real Estate and Cushman & Wakefield TH Real Estate.

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