Royal London to buy Horizon retail park

RETAIL & LEISURE WEEK: Royal London is buying the Horizon retail park development in Farnborough, Hampshire, for £39m – a 5.25% yield. The development is under construction but owners Steamrock Capital and Catalyst Capital have managed to secure tenants for the entire park. Lease lengths are typically 10 years and the average rent is £35 per sq ft. The Horizon retail park sits opposite the existing Solarton Retail Park and comprises 79,760 sq ft of space and 228 car parking spaces. Confirmed tenants include home furnishing and craft dealerships such as Oak Furniture land and Hobbycraft. The deal is one of only a few investment transactions to take place this year, after volumes have been hit by concerns about consumer confidence and Brexit. According to EG data, only around £824m has been invested into the retail sector so far this year, of which £263m has been invested into retail parks. Royal London has been one of a handful of active investors. Its acquisitions this year include the Orchard Business Park in Woking, Hampshire, which it bought from Goya Developments in April for £21m. Despite the headwinds that the retail park sector is facing at the moment, the out-of-town development sector remains active. According to EG data, retail park applications are 60% up year on year and are at a 10-year high. CWM Out of Town is representing Royal London; Morgan Williams is advising Steamrock Capital and Catalyst Capital. To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette