A Tyneside retail park has been sold to new owners for £4.1m following a competitive bidding battle.
Avison Young Retail secured the sale of Waterloo Square Retail Park, South Shields, South Tyneside, for Royal London Asset Management (RLAM).
The 40,925sq ft retail park fronts onto Coronation Street between Asda and the King Street prime retail area, close to the new bus and Metro interchange, and comprises a ingle retail terrace of three units let to B&M, Next and River Island. All three retailers have recently signed new leases.
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The 2.32 acre site is held on a 200-year long lease from South Tyneside Council at an annual peppercorn rent.
New owners M7 Real Estate Ltd, based in London, sealed the deal for £4.1m reflecting a net initial yield of 7.99%.
Miles Marten, principal and MD at Avison Young Retail UK, said: “Following the demise of Debenhams, it has been good to secure B&M with a large store to serve South Shields.
“Avison Young are pleased to have sold the long leasehold interest to a new institutional investor.”
Simon Beanland, principal, investment, Avison Young, Newcastle, added: “Interest from a large pool of buyers resulted in two rounds of competitive bidding, in a sector which has made a strong comeback, resulting in pricing far exceeding our original quoting level.”
JLL UK Retail acted for the purchaser.
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