A retail park in Lancashire has been bought for £2.8m - despite Covid's severe impact on the sector.
Glenbrook Investments has completed the acquisition of Eastgate Retail Park in Accrington, which is occupied by tenants including Home Bargains, Pets at Home and The Food Warehouse.
The 4.91-acre site also contains a development with previous consent for an additional unit of approximately 16,000 sq ft.
The move comes despite Covid's impact on various sectors including retail - but Chris Lloyd of Glenbrook said the park's tenants had traded well despite the lockdown.
Mr Lloyd, who is investment director, said: “We are thrilled to have completed this purchase. 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.”
The acquisition achieved a net initial yield of 12.73%.
Cheetham and Mortimer advised Glenbrook, while Aston Rose acted on behalf of the vendor.
Robert Millington at Cheetham and Mortimer added: “With a passing rental of £382,710 per annum, this asset generates an attractive income return whilst presenting numerous opportunities to add value in the future.
"Schemes of this size and nature have become increasingly dominant within the local shopping hierarchy and we expect this trend to continue”
