Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, has acquired the Beehive Shopping Park in Cambridge from British Land for £109 million, which gives an initial yield to the pension client of the firm of 5.25%.
Let at an average rent of £24.96 per sq ft with a weighted average lease length to first break or expiry of 14 years, the 240,000 sq ft shopping park comprises 140,000 sq ft of open planning consent and 100,000 sq ft of bulky goods planning consent space.
The Beehive Shopping Park is anchored by an Asda supermarket with other tenants including M&S Simply Food, Next Home, TK Maxx, Toys 'R' Us, Carpetright, DW Sports Fitness, Multiyork, Oak Furnitureland, Pets at Home and HomeSense.
The acquisition brings the volume of shopping centres and parks managed by Orchard Street to £1.4 billion.
Commenting on the acquisition, a spokesman for Orchard Street, said:
“Opportunities to acquire major well let retail assets are rare, and this case, the property has the added advantage of being in a dominant position in one of the most vibrant and fast growing Cities in the UK.We feel the property is a great addition to our client’s portfolio and we are sure that it will make a very positive contribution to Fund performance, as well as remaining a key element within the shopping offer of the City of Cambridge for the long term.”
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.