Retail park sold for £17m

Huddersfield Retail Park, on Beck Road, Huddersfield, was sold to Helical Bar.

The price represents a net initial yield - the rent generated by a property expressed as a percentage of its valuation - of 7.2 per cent.

The park is fully let to retailers including Matalan, Dunelm, Aldi and B&M on long leases.

About £11m of the acquisition was funded through Helical’s credit facility with Barclays Bank with the remainder provided through existing cash resources.

The 96,977 sq ft site, which benefits from Open A1 planning consent, comprises two terraces of three units on a 6.5 acre site with 304 car parking spaces.

Helical said that five of the six units were let between 2009 and 2012 and so the rents are low (an average of circa £13 per sq ft), offering opportunities for future rental growth. In addition, a number of the leases have fixed increases.

The acquisition is the third purchase by Helical within the last eight weeks, following the purchases of New Loom House and Maple House in London. This means the Company has now invested about £70m post its retail bond issue into opportunities where it expects good rental growth.

Jack Pitman, investment director at Helical Bar, said: “This was an opportunity to buy a well-let retail park let off low rents set during the recession. The 7.2 per cent yield provides a balance to the circa £53m of lower yielding central London assets Helical has bought over the summer.”

The property was sold by administrators at PWC appointed over Castlemore Securities and their real estate strategy for the site was worked up with Cordatus Real Estate and PWC’s real estate team.

Wilkinson Williams advised Helical Bar and Edgerley Simpson Howe advised the vendor.