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Ediston Property acquires Springkerse Retail Park for £22.85m

The asset is the dominant retail park in Stirling and extends to 162,593 sq ft across 12 units, it is let to 10 tenants and produces a passing rent of £2.23m per annum

Ediston Property Investment Company has announced that it has acquired Springkerse Retail Park, Stirling, Scotland, for £21.85m, in an off market transaction.

The price reflects an initial yield of 9.54% and was purchased from clients of LaSalle Investment Management.

The Stirling Council area has a population of just under 100,000 people, which is forecast to grow at an above average rate, and draws on a primary retail catchment of 228,000.

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The asset is the dominant retail park in Stirling and extends to 162,593 sq ft across 12 units, it is let to 10 tenants and produces a passing rent of £2.23m per annum.

The park is anchored by B&Q, with other tenants including Wren Kitchens, DFS, Pets at Home and Halfords represented on the site.

The acquisition was funded using the proceeds from the sale of the Tesco Superstore in Prestatyn, which was sold for a 5.2% yield.

Furthermore, it is expected that the net operating income from the new acquisition will be 35% higher than the rent received from Tesco, and is therefore accretive to dividend cover.

Calum Bruce, investment manager, said: “The purchase of this asset is consistent with our recently updated investment strategy of acquiring retail warehouse parks.

“It is our objective to recycle capital from lower yielding assets into properties which are more suited to our intensive style of asset management, and this acquisition achieves this aim.”

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