Orchard Street plucks Derby investment
Published: 02 December, 2016
Orchard Street acquires prime Derby retail park for £57.3m
Orchard Street Investment Management has bought Kingsway retail park in Derby for £57.3m, reflecting a net initial yield of 5.75 per cent. The asset was acquired on behalf of St James’s Place Property Unit Trust from TH Real Estate.
Kingsway retail park is the prime and dominant retail park in Derby, located two miles west of the city centre. Completed in 1995 and updated and reconfigured since, the 148,765-sq ft open-air scheme is currently fully let to 16 first-class retailers, including Next, TK Maxx and Marks & Spencer, and holds a WAULT of 6.25 years. The park has parking for 513 vehicles.
Orchard Street partner Barney Rowe said: “Kingsway retail park is an excellent addition to our portfolio, demonstrating exceptionally strong trading performance in addition to resilient occupier demand. As the dominant retail park in the wider area, it benefits from a diverse range of high-quality tenants attracting a high level of footfall, whilst it also offers the longer term potential to undertake asset management initiatives to enhance future growth.”
Orchard Street was advised by Savills, while the vendor was advised by Morgan Williams.