Helical Bar has completed the acquisition of Huddersfield Retail Park, Beck Road in Huddersfield, West Yorkshire from Administrators at PWC appointed over Castlemore Securities Ltd.
The purchase price of £17 million reflects a net initial yield of 7.2%. The real estate strategy for the site was worked up with Cordatus Real Estate and PWC’s real estate team. Edgerley Simpson Howe advised the vendor. The 96,977 sq ft property, which benefits from Open A1 planning consent, comprises two terraces of three units on a 6.5 acre site offering 304 car parking spaces. The Park is fully let to a strong selection of retailers including Matalan, Dunelm, Aldi and B&M on long leases (the weighted average unexpired lease term is 12 years without breaks, 10 years including breaks). Five of the six units were let between 2009 and 2012 and so the rents are low (an average of circa £13 psf), offering opportunities for future rental growth. In addition, a number of the leases have fixed increases. Matthew Hammond, Partner at PWC said: “Following wide marketing of this asset, we were pleased to generate a competitive bidding process with several institutional investors, generating an attractive price for the Administration” Michael Cunningham, Director at Cordatus said: “The park was sold following completion of an asset management plan which included leasing 13,500 sqft of vacant space, extending the principal lease on the park and extending the car park. We are delighted at the contribution these initiatives made to securing this sale.”