Europa Capital and Ediston Real Estate have forward sold Plymouth Gateway Retail Park, Plymouth to Royal London Mutual Insurance Society at a price for the completed development of £22.7 million, reflecting a yield of 5.9%.
The 55,000 sq. foot retail warehouse park, which is currently under construction, is fully pre-let to Mothercare, Wren Kitchens, Tapi Carpets, Sofology, KFC and Costa and is due to be completed in September 2018. Ediston and Europa received strong tenant interest for the development in a supply restricted market, achieving rents of between £22.00 and £25.00 per sq. foot per annum for the terraced units.
Andy McKinlay of Ediston commented, “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. Plymouth Gateway is a prime example of this. The Park is expected to be fully developed by September 2018 allowing the tenants to fit out and occupy as quickly as possible”.
James Fortescue of Europa Capital added, “Full pre-letting and our commitment to this development underlines our belief in the right product in the sector, despite some adverse sentiment, and pre-selling to Royal London represents another good result for the Europa/Ediston joint venture within Europa Fund IV.”
Mike Lawrence, Royal London’s Head of Retail commented, “Plymouth Gateway is an excellent acquisition for RLMIS and is in line with the Fund’s objectives of acquiring best in class assets within demographically strong locations across the UK.”