Acquired from M&G Real Estate, the purchase price reflects a net initial yield of 5.18 per cent. The Grafton Centre comprises nearly 500,000 sq ft of retail and leisure space arranged over 84 units, while also providing 1,150 car parking spaces. It is anchored by Debenhams and Bhs, and other major retailers include H&M, Next, New Look, Topshop and Boots. The first floor comprises an eight-screen Vue cinema as well as a food court, with tenants including Bella Italia, Burger King and Café Lavazza.
With one of the strongest and fastest growing economies in the UK, Cambridge is considered an attractive investment target with its core strengths being its large, affluent and rapidly expanding catchment based on the University, significant R&D industry and tourism.
Director and fund manager Charlie Walker said: “The purchase complements the existing assets in the portfolio and come hot on the heels of the final closing of our second closed-ended UK Property Income Fund, which provides over £610m of firepower. Going forward, we continue to seek out opportunities to deploy capital into attractive UK acquisitions where we see good quality income potential.”
And the centre’s general manager Lance Stanbury said: “This is a huge vote of confidence in Cambridge, one of the strongest cities in the UK, and in The Grafton, a fascinating retail property with enormous potential for future growth.”
Strutt & Parker and Bidwells advised LGP, while Cushman & Wakefield acted for M&G Real Estate. The scheme will be managed by JLL.