Europa Capital and Ediston Real Estate have forward-sold Plymouth Gateway Retail Park for £22.7m to Royal London Mutual Insurance Society.
The deal for the 55,000 sq ft site, sold ahead of development completion, reflected a yield of 5.9%. The retail park is fully pre-let to Wren Kitchens, Tapi Carpets, Sofology, Mothercare, KFC and Costa, with rents ranging from £22.00 to £25.00 per sq ft per annum.
Construction is expected to complete later this month.
Europa Capital’s investment in the development was on behalf of its Europa Fund IV.
James Fortescue, partner at Europa Capital, said: “This forward sale to Royal London represents another good result for the Europa/Ediston joint venture within Europa Fund IV as institutional investors recognise the quality of our developments and the fruits of our commitment to each scheme.
“The successful pre-letting of Plymouth Gateway well ahead of practical completion further underlines our belief that the right product will perform in different sectors, even in the face of adverse sentiment in the case of retail.”
Andy McKinlay, a director at Ediston, added: “Despite what appears to be challenging times for the retail occupier market, we have still experienced strong demand across the Europa/Ediston retail warehouse portfolio.”
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