Ediston Property Investment Company plc (LSE: EPIC) announces that it has exchanged contracts to acquire the Abbey Retail Park in Daventry from Threadneedle Property UK Select Fund for £11.95 million (net of acquisition costs and rental guarantees on two vacant units). The yield will be 7.80% when the Park is fully let.
The property provides 63,160 sq. ft. of retail warehousing, anchored by Homebase, with parking for 386 cars, on a five acre site. The weighted average unexpired lease term is just under ten years. Two units totalling 11,666 sq. ft. are vacant. Two kiosks totalling 2,700 sq. ft. are also vacant but benefit from a two-year rent, rates and service charge guarantee from the vendor. This will be drawn down as income until the units are let and income producing, or the guarantee period ends.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “This purchase is in line with our strategy of acquiring quality assets with good, core income streams, but with angles to be exploited through active asset management and a focused letting strategy. We are confident that we will be able to attract high calibre tenants to the vacant units.”