A retail park in Edinburgh has been sold to London-based investors in a deal that reflects confidence in the long term prospects for the market amid tough times for some stores groups.
Danobe Securities bought Craigentinny Retail Park for £3.35m after a sale process which advisors said attracted competitive bids.
Jamie Thain of the Galbraith property consultancy said the asset attracted a lot of attention due to factors such as its prominent location in the Seafield area of Edinburgh.
He said the deal provided a clear example of continued investor appetite for well-presented and sensibly priced retail investments.
The park is let to Halfords, Archers Sleep Centre, Connection Flooring and Sue Ryder, with an average unexpired lease term of 10.2 years. It generates annual rental income totalling around £278,500.
Danobe Securities acquired the Craigentinny Retail Park from a client of Cedarwood Asset Management. Cedarwood announced the purchase of the asset for £2.9m in October 2015.
The rise of internet shopping has posed big challenges for retailers on the country’s high streets.
Operating on retail parks may allow retailers to achieve cost savings while benefitting from the boost to customer numbers resulting from specialising in goods people want to inspect before buying, such as carpets.
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