The investor and developer has acquired the 35,400 sq ft Eastgate Retail Park in Accrington town centre from a private property company for £2.8m, representing a net initial yield of 12.73%.
The property was put on the market in 2018 with an asking price of £5.2m, but “investor sentiment became tainted by the malaise of the retail sector”, according to agency Cheetham & Mortimer, which acted for Glenbrook on the deal.
The five-acre retail park is occupied by tenants including Home Bargains, Pets at Home and The Food Warehouse. In addition, the scheme offers a development opportunity with previous consent for an additional unit of approximately 16,000 sq ft.
Chris Lloyd, investment director at Glenbrook, said: “Despite the negative rhetoric around retail in general, retail warehousing has positive metrics and some very resilient tenants that have continued to trade well throughout lockdown.
“The locations of these parks have great connectivity and values are underwritten by alternative uses such as trade park industrial and last-mile logistics. We hope and plan to acquire more assets of this nature over the next 12 months.”
Robert Millington, partner at Cheetham & Mortimer, added: “With a passing rent of £382,710 per year, this asset generates an attractive income return, while presenting opportunities to add value in future.
“Schemes of this size and nature have become increasingly dominant in the local shopping hierarchy and we expect this trend to continue.”
Aston Rose acted on behalf of the vendor.