M&G Real Estate acquires Bridgend designer outlet for £115.5 million

M&G Real Estate has acquired Bridgend Designer Outlet for £115.5 million from TH Real Estate, reflecting a net initial yield of 5.75 per cent. The acquisition was made on behalf of M&G Property Portfolio, managed by Fiona Rowley and Justin Upton.

Anchored by an Odeon cinema, Next, GAP, Marks & Spencer, Adidas and Clarks, the 244,080 sq ft designer outlet is multi-let to a leading line up of over 90 designer, premium and high street brands at a rent of circa £7 million per annum. Other tenants include Kurt Geiger, Lacoste, Ted Baker and Fat Face. A wide range of restaurants and cafes are also located within the scheme, with a Premier Inn and Sainsbury’s located adjacent, providing consumers with a comprehensive shopping and leisure experience.

McArthurGlen will continue to manage the centre which achieved an annual footfall of 3.8 million last year, benefitting from its location in the most densely populated area in South Wales – just two miles north of Bridgend town centre, mid-way between Cardiff and Swansea at Junction 36 of the M4.

Commenting, Fiona Rowley says: “Bridgend has witnessed substantial population growth of over eight per cent in the past decade, which was the second largest rise in Wales. It is also strategically located to capitalise on both Cardiff and Swansea’s economic strength as well as the Welsh capital’s 18 million annual tourists.

“Bridgend Designer Outlet has benefitted from five per cent year on year turnover growth during the last five years and, as a result, rental growth is set to continue rising, aided by significant levels of inward investment into the region. This fully supports our strategy for acquiring prime retail assets in strategic locations to provide our investors with long-term income growth revenue.”

Katherine Friend, Head of Asset Management, Retail Warehousing at TH Real Estate, adds: “Bridgend Designer Outlet has performed very well for TH Real Estate over the last seven years following significant improvements to the retailer line up and refurbishment works completed. However, the proceeds of the sale will be used to further develop and enhance both Cheshire Oaks Designer Outlet and Swindon Designer Outlet to continue to drive outperformance for the Henderson UK Outlet Mall Fund.”

Morgan Williams acted on behalf of M&G Real Estate and Cushman & Wakefield represented TH Real Estate.