Savills fund cuts back on retail
Published: 01 March, 2017
Bristol retail park sold and funds reinvested in sheds
Savills Investment Management has sold the Gallagher retail park in Bristol to CCLA’s Local Authorities’ Property Fund for £32.325m, reflecting a net initial yield of 5.9 per cent. The park totals 117,800 sq ft and comprises units let to B&Q and Currys for a current passing rent of £2.022m pa.
The deal forms part of a £47m repositioning of the UK Income & Growth Fund which has reinvested the proceeds in the Fujitsu Data centre in Stevenage and an industrial warehouse in Guildford.
Jamie Pearson, UK Income & Growth fund manager at Savills Investment Management, said: ”These transactions are part of our strategy to defensively position the Fund for the next phase of the market cycle and ensure it continues to deliver a 5 per cent income return to investors in the long term.”
Savills represented the vendor and CCLA was represented by Clay Street.