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M&G Real Estate buys Parc Trostre for £156m

Published:  11 August, 2014

Dominant open A1 retail park in South Wales changes hands off 5 per cent yield

M&G Real Estate has bought Parc Trostre, Llanelli for £156m, reflecting a net initial yield of 5.07 per cent. The M&G Property Portfolio has bought the park off-market from Stadium, owner since the park was developed in 1988.

Parc Trostre is one of the premier shopping parks in the UK with 264,921 sq ft of retail space and 144,223 sq ft of mezzanine space across 34 units.

Alongside anchor tenants Marks & Spencer, Debenhams, Next and Outfit, other major brands include River Island, TK Maxx, BHS, Asda Living and Starbucks. The shopping park is also adjacent to a regionally-dominant Tesco Xtra and benefits from full open A1 planning permission as a district centre within the local plan. The last major refurbishment including partial redevelopment took place in 2008.

Llanelli is 11 miles west of Swansea and 61 miles west of Cardiff and has excellent transport links both via the M4 motorway and direct rail services to Cardiff, London and Manchester. It is the fourth largest urban area in Wales with a primary catchment of 109,000 people.

Portfolio manager Justin Upton said: “Parc Trostre in Llanelli is the dominant shopping park in South Wales. This off market purchase continues our strategy of acquiring ‘best in class’ retail assets in locations with strong fundamentals and growing catchment areas. With a strong fashion led occupier base and the ability to drive rental values via the introduction of new fascias and asset management we believe the park will fit well into the existing high quality retail warehouse portfolio within the fund.