Aviva Investors sell Beacon Retail Park to TIAA Henderson Real Estate for £29.25m

Aviva Investors has sold Beacon Retail Park in Milton Keynes to TIAA Henderson Real Estate. The freehold investment was purchased for £29.25m, reflecting a net initial yield of 5.65%.

The retail park offers a family shopping mix in the now dominant out of town retail destination for Milton Keynes and has secure income with an AWULT of c.9.5 years to expiry. The retail warehouse accommodation consists of eight units totaling 84,497 sq ft and is let to tenants including TK Maxx, Boots and Sports Direct.

Lara Weaver, Aviva Investors, says: “During the last two years we delivered our asset management plan which included obtaining a planning consent, letting and building a new 10,000 sq ft unit. We subdivided a unit to create an A3 unit to improve dwell time on the park. We secured a 10 year lease renewal with an existing tenant and re-let an existing unit on a 15 year term subject to planning. Following completion of these initiatives it was decided to take this asset to market in order to maximise value for the Fund.”

Marcus Wood, Senior Director, Investment Retail, says: “We are pleased to have acted on behalf of Aviva Investors on Beacon Retail Park. The retail warehouse investment market has been the busiest since the financial crisis.  Retail warehouse trading volumes in Q3 alone reached £1.16bn, which is a quarterly record.  Trading in the sector year to date is circa £2.45bn, and the book has not yet closed so we are expecting a post recession record year.  However, large volumes don’t always mean high prices and with more stock available, investors can be more selective on the assets where top prices are being paid.”

DTZ acted on behalf of Aviva Investors and Morgan Williams acted on behalf of TIAA Henderson Real Estate.