Aviva puts leisure parks on the market
Aviva Investors has instructed KLM Retail to market two leisure parks in Jersey and Bristol, in deals collectively worth £29.2m.
Both of the schemes are anchored by Cineworld. KLM is exploring opportunities to sell the two parks in a package deal.
The investor is seeking £15.6m for its St Helier leisure park, The Waterfront, reflecting an initial net yield of 7% on current passing rent.
Aviva Investors has instructed KLM Retail to market two leisure parks in Jersey and Bristol, in deals collectively worth £29.2m.
Both of the schemes are anchored by Cineworld. KLM is exploring opportunities to sell the two parks in a package deal.
The investor is seeking £15.6m for its St Helier leisure park, The Waterfront, reflecting an initial net yield of 7% on current passing rent.
The scheme is fully let with total passing rent of £1.2m pa, representing a current average rent of £12.83 per sq ft.
On top of a 10-screen Cineworld multiplex, the scheme is jointly anchored with an Aquasplash swimming pool and waterpark. Other tenants include Fitness First, KFC, Pizza Hut and TGI Fridays.
Meanwhile, Aviva is also marketing Hengrove Leisure Park in Bristol for £13.5m, marking an initial net yield of 7.5%. It estimated that this will increase to 8.4% by May 2019, after rent reviews are settled, as well as a fixed increase on its cinema lease.
The property includes a 14-screen Cineworld multiplex and a Gala Bingo hall.
Will Andrews, partner at KLM Retail, said: “Aviva has identified strong current investor demand for the leisure sector and these two schemes will give the market what it wants: sustainable rents and occupier demand, with the opportunity to add value through asset management in the future.”
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