PROPERTY LEASED TO B&Q IN CRAIGAVON CHANGES HAND IN DEAL WORTH ALMOST £12 MILLION
20 November 2013International property investment manager, Cordea Savills, has bought a B&Q retail warehouse at Marlborough Retail Park, Craigavon, on behalf of the Bishopsgate Long Term Property Unit Trust for £11.9 million report acquisition agents, Osborne King, reflecting a net initial yield of 7.90%. Occupying a prominent position within Central Craigavon, the 86,000 sq ft purpose-built property is in close proximity to Rushmere Shopping Centre and Retail Park. Developed and constructed in 2001 by local developer and vendor, Turkington Holdings, it has been leased since then to B&Q Plc for an estimated £1 million per annum.
Trevor Turkington, Director of Turkington Holdings, said, "With the support and expertise of our bank, Ulster Bank, and our property advisers, we have been able to secure another significant sale, which underlines both the returning confidence in the local market and the quality of the product that we are able to bring to it. By working with us over the long-term, Ulster Bank has enabled another strong sale price to be realised from a large European fund.”
Andrew Coggins from Osborne King who acted on behalf of buyer, Cordea Savills, remarked, "This is the latest in a list of substantial investment deals to take place in Northern Ireland this year. 2013 marks something of a turning point during which we have seen investors, including global asset managers of the calibre of Cordea Savills, choosing to invest once again in Northern Irish property. This is very encouraging, as not only does it reflect the quality of the product on offer, but also suggests that these solid, serious investors have confidence once more in our local market. A considerable shift has occurred within the commercial property landscape in terms of ownership, which is most welcome and could well act as a catalyst for further new investment opportunities looking ahead to 2014."
Patrick Lowther, Portfolio Manager of the Bishopsgate Long Term Property Unit Trust, commented, "On behalf of the Fund, we are pleased to have acquired a well-let, income-producing asset at an attractive discount to current mainland pricing. The property also benefits from a flexible planning consent which we believe underwrites the longer term value of the site." The sale of the B&Q retail warehouse at Marlborough Retail Park, Craigavon follows the recent disposal by Turkington Holdings of a number of assets with the support of Ulster Bank.