Capital & Regional, the co-investing property asset manager, has sold the Morfa Shopping Park in Swansea to its sister fund, the Junction, for £105m

The purchase price reflects a net initial yield of around 4% and an equivalent yield of 4.7%.

Morfa Shopping Park comprises 265,000 sq ft (24,619 sq m) of mixed bulky goods retail and is next to the new Liberty football and rugby stadium in Swansea.

Tenants include TK Maxx, Boots, Next, New Look, ASDA George, Sports World, Argos, Peacocks, Brantano Footwear, B&Q, Pizza Hut and KFC.

Claire Clark, fund manager for the Junction fund at Morley Fund Management, said: ‘A shopping park of this quality is highly sought after and is therefore a significant acquisition for the Junction.

‘It enables us to increase our exposure to the high rental growth offered by open A1 units and, coupled with our recent secondary retail park sales, we have successfully been able to rebalance our portfolio.

‘The Junction fund now represents around 8% of the UK retail warehouse market (as measured by IPD), and our investors have not only benefited from total returns of over 27% per annum since inception, but have also seen the strong diversification benefits of investing in an active management fund of such scale.’

Wilkinson Williams acted for the Junction.