U+I has sold the Atlantic Village outlet centre in Bideford, North Devon, to Global Mutual for £13m. The price reflects a net initial yield of 8.25 per cent.
Atlantic Village opened in 2000 and has an open A1 planning consent. It is anchored by Marks & Spencer and Nike with a total of 41 retail units totalling 146,322 sq ft together with 800 car parking spaces. There is an outstanding consent for a petrol filling station which is pre-let to Asda.
Colliers International advised U+I and James Findlater, Colliers’ head of shopping centre investment, said: “The last few years have seen particularly strong investor demand for factory outlet centres which offer a unique value proposition for consumers matched with low occupancy costs for retailers. The alignment of retailer and landlord interests through flexible lease structures promotes genuine partnership and has kept the sector energised despite consolidation in other physical retail formats in the face of online spending growth.”