Double acquisition for Praxis
Praxis Holdings has bought two properties for £7m, St John's Shopping Centre in Preston and office building Millennium Gate II in Crewe Business Park.
Praxis acquired St John's Shopping Centre from Land Securities Plc for £4m, at a net initial yield of 13.5%. The centre comprises 23 retail units totalling 70,000 sq ft and is next to the grade-2 listed Preston Bus Station. Praxis now owns seven shopping centres across the UK.
The 31,533 sq ft Millennium Gate II office building in Crewe Business Park is fully let to Air Products, and was bought for £2.7m from Knight Frank acting as LPA Receivers to Kings Properties. This reflects a yield of 14.9% equating to £82/sq ft.
Jack Burgess, investment manager at Praxis, said: "There is a general over supply of retail in Preston but St John's benefits uniquely from its proximity to the bus station with 50,000 passengers passing through daily. Now that the Bus Station is listed, the location is never going away.
"Millennium Gate II is a grade A building fully let to a blue chip tenant. At £82 a sq ft, we bought it for less than replacement cost."
