Orchard Street Investment Management, the specialist commercial property investment manager, has acquired Suffolk Retail Park, Ipswich from clients of Aberdeen Asset Management for £18.75 million, reflecting a net initial yield of 7.1%. The purchase was made on behalf of St James Place Wealth Management.
Suffolk Retail Park is a 96,787 sq ft retail park comprising six units which has Open A1 planning consent that includes the option for food retail on the majority of the site. With a total passing rent of £1,406,824 and an average overall rent of £14.60/sq ft, the park is occupied by a strong line up of retailers including Next, Halfords and Argos.
Barney Rowe, Partner at Orchard Street Investment Management, said:
“Several factors make Suffolk Retail Park an attractive acquisition for our client, one of which is the property’s flexible planning consent in a town where retail park planning consents are typically restrictive. The opportunity this provides was demonstrated by the latest letting at £25/sq ft, versus the low passing rent across the remainder of the park.”
CBRE advised Aberdeen and Morgan Williams advised Orchard Street.
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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.