Orchard Street makes £35m Hermiston retail park acquisition
Orchard Street Investment Management has bought Hermiston retail park in Consett, County Durham on behalf of St James’ Place for £35.31m from Aviva Investors. The purchase price reflects a net initial yield of 6.25 per cent.
The 157,000-sq ft scheme is the dominant retail park in the local area and is anchored by a Morrisons supermarket with other retailers including B&Q, Carpetright, Pets at Home, Poundland, Matalan and Sports Direct. With a WAULT of 16.3 years to expiry and 13.2 years to break, the park is let off modest rents between £10.00 and £17.68 per sq ft, with the supermarket lease providing five yearly RPI-linked uplifts. Currently one unit in the park is unlet, providing an opportunity to enhance the tenant mix at this popular, locally dominant scheme.
Orchard Street was advised by Morgan Williams and Aviva by Cushman & Wakefield.