UK Commercial Property REIT, which is managed and advised by Aberdeen Standard Investments, announced that it acquired Trafford Retail Park near Manchester from Peel L&P for £33 million.
Constructed in 1999, the 12-acre site comprises 143,000 sq ft of retail warehouse accommodation across fourteen units, ranging in size from 2,000 to 35,000 sq ft.
The asset is currently 100% let to a range of retail tenants including Dunelm, B&M, TK Maxx and Home Bargains.
It also houses Nando’s, Pizza Hut, McDonalds and Five Guys.
The park delivers annual income of £2.5 million a year, with an average rent of £17.17 psf across all units.
“Trafford Retail Park is well located in the heart of TRAFFORDCITY, one of the UK’s leading retail and leisure destinations, and benefits from high traffic and footfall, attracting 2.5 visitors per year,” said UK Commercial Property REIT.
“The park has an estimated catchment of c. 2.4 million people, with 1.5 million within a 20 minute drive.
“Its position on junction 10 of the M60 and substantial food and beverage offering means it also provides a quasi-motorway service station function.”
UK Commercial Property REIT fund manager Kerri Hunter said: “This deal presents us with an opportunity to strengthen our portfolio and enhance income through the acquisition of a well-located retail park with a high quality tenant base and impressive footfall in one of the UK’s premier shopping and leisure destinations.
“While some parts of the retail sector have struggled in recent years, Trafford Retail Park is primarily let to discount focused and convenience led retailers, which have proven resilient and continue to perform well.
“As a diversified REIT, we benefit from the ability to look for assets across a range of sectors that offer accretive returns, enabling us to deliver value and income to our investors.”