Lothbury Investment Management has sold the multi-let retail park near the town centre to Middlesbrough Council’s Teesside Pension Fund, representing a yield of 6.46%.
The retail park totals 64,800 sq ft over 10 units, let to B&M, Bensons, Carphone Warehouse, Halfords, Jollyes Pets, Laura Ashley, Marks & Spencer, and Shoe Zone. Topps Tiles formerly operated one of the units but its store closed in the middle of March.
These generate an annual rental income of more than £1m, while the tenants’ average weighted term is under three-and-a-half years.
Congleton Retail Park was originally developed in 2004 and extended in 2007, and the site has planning consent for further expansion. It was purchased by Lothbury in 2014.
Ed Hockley, fund manager and director of Lothbury Investment Management, said: “Congleton Retail Park has given the fund good rental growth since its purchase in 2014 and created some opportunities for asset management initiatives.
“However, with the retail environment undergoing considerable pressures, our policy is to selectively divest in the sector and de-risk our exposure.”
Morgan Williams acted for Lothbury; Edgerley Simpson Howe acted for Teesside Pension Fund.