Hammerson has exchanged contracts to sell a retail park in Cardiff for £37.5m.

Avenue Retail Park has been sold to the Lanebridge Property Fund at a yield of around 5%. It generates a net rental income of £2m a year.

Hammerson acquired the park as part of its acquisition of retail warehouse specialist Grantchester Holdings in 2002. In 2005 it carried out a major improvement programme and expansion of the scheme at a cost of £25m, increasing its size by 48,440 sq ft (4,500 sq m) to 113,020 sq ft (10,500 sq m).

Chief executive John Richards said: ‘Having added value through the redevelopment, we are selling this property in order to reinvest in other opportunities in the retail parks sector.’