Rockspring strengthens retail hold in Lancaster

Bolton-based Gordon Moon Properties has sold 44,000 sq ft of fully occupied retail stock in Lancaster to Rockspring Property Investment Managers for £10.5m.

The retail accommodation is located across Penny Street, Lancaster Gate and St Nicolas Arcade in the town centre. Rockspring already owns the shopping centre next door.

The eight-unit parade was sold at a net initial yield of 7.1%. Rockspring will hold the asset in the Rockspring Hanover Property Unity Trust. Tenants in the shops include Arcadia Group, Superdrug, O2 and Poundland.

James Gordon, investment manager at Gordon Moon Properties, said: "By ensuring a mix of high quality retailers, we have created a valuable asset extending through St Nicholas Arcade and round on to Penny Street, the town's prime retail parade. The sale enables us to focus on new opportunities and continue to develop our portfolio throughout the North West."

Mischa Davis, Rockspring's Hanover fund manager, said: "The retail assets in Lancaster, when combined with our existing ownership of the adjacent shopping centre, provide an opportunity for us to take a dominant position in the town's core retail area and increase our asset management options."

Gordon Moon Properties were advised by CBRE.