Coventry’s Central Six Retail Park has a new owner after changing hands for more than £16m.
The shopping centre, next to Coventry railway station has been snapped-up in a deal worth a whopping £16,411,000.
It has been bought by AEW UK REIT (AEWU).
Read more Coventry news
The company moved for the 11.91 acre Coventry site after selling two of its industrial holdings in South Kirkby and Basingstoke.
A company spokesman said they acquired Central Six as “there continue to be interesting opportunities to acquire assets that provide strong income yields”.
They added: “The site presents opportunities to add value through active asset management by renewing current tenancies and securing new tenants on the park.”
The site is approximately 0.7 miles from Coventry city centre and adjacent to Coventry railway station and the Friargate regeneration area.
The retail park provides 148,765 sq ft of retail space with parking for 635 cars.
Current tenants include TK Maxx, Next,Boots, Sports Direct, Burger King and Poundland.
Speaking about why the company wanted to invest in Coventry the AEWU spokesman added: “Coventry has one of the fastest growing populations in the UK outside of London.
“Between 2019 and 2024 it is expected to grow by 1.25% per annum, ranking the city second out of 200 in the PROMIS Centres Retail Report.
“Coventry was named the UK’s City of Culture 2021, which is estimated to generate an additional £80m for the local economy.
“The tenants at Central Six Retail Park have proven to be resilient during the pandemic, with rent collection rates generally being strong.”
Alex Short, portfolio manager, AEWU, said: “We are pleased to have acquired Central Six Retail Park in Coventry, which has been purchased for a price that will deliver an excellent initial yield and contribute immediately to shareholder returns.
“At present the retail warehouse sector is providing some interesting opportunities, often underpinned by alternative use value, and occupied by tenants that have shown resilience during the pandemic.
“We are pleased to add this asset to the portfolio and will continue to target acquisitions where we believe valuations offer the opportunity to deliver both strong income and capital performance.”
Keep up with the latest news with our email alerts directly to your inbox. Sign up here.