Most Read
Comments
Network Activity
Advertisement
Advertisement
British Land and House of Fraser jv sells £100m
07:34 | 03.07.09
British Land and House of Fraser’s property joint venture is selling more than £100m of deals this year.
The department store joint venture, formed in 1999, as of March this year owned 11 department stores valued at £138m with a net rent of £12m and it now has just two left to sell.
The majority of the purchases of the House of Fraser department stores have sold for yields of between 7.5-8.5%.
Andrew Jones, British Land’s head of retail, said: ‘The sales are part of our plan to reduce our ownership of assets where rental growth is muted over the long term.’
Ben Young, investment director at British Land said: ‘The quantum of deals we have done has been in light of a difficult market. The buyers, the majority of which have been institutional funds and private property companies, have been able to raise debt against the House of Fraser covenant to fund the deals.’
It has sold Guildford to Canada Life while Scottish Widows Investment Partnership has bought stores in Leeds and Leamington Spa.
Prupim has bought Plymouth which is a leasehold, rather than freehold, for a yield of around 10%. It is also in discussion to buy Camberley for around 7.5%.
Legal & General has bought Carlisle for a yield of around 9.25%.
Redkite, a private property company, has bought Chichester and is in discussions to buy the store in Hull while a private property company has bought the store in Lincoln.
Its store in Cardiff is also under offer to a local private investor while the Grimsby store is also just about to go under offer.
The final store in Middlesborough is being brought to market.
Anthony Havelock, partner at Knight Frank, said: ‘Legal & General’s rationale to buy Carlisle was due to the discounted 9.25% yield, compared to other similar deals of this kind. The Carlisle store is in the prime position within the city, where it has an underlying site value as well as good tenant demand for the location.’
Agents advising on the deals included CB Richard Ellis, Cushman & Wakefield, Knight Frank and Savills.
Be first to receive news with Property Week newsletters. Signup
| RSS  HELP? |
||
