Property letting, sales and investment case studies - BNP Paribas Real Estate UK
IgnisPurchase of prime open A1 with food retail park The purchase of a prime retail park, benefiting from an open planning consent including food use. The asset was acquired in an off market transaction, and had the benefit of an agreement for lease for a new 70,000 sq ft food store, let to Tesco.
- Location Leicester
- Key figures Purchase price: £49.9m, 165,000 sq ft of office and retail space on the 12 acre site, annual income of £3.1m net
- Contact Paul Griffiths, +44 (0) 20 7338 4266
- To achieve future higher than average rental growth, the client was looking to increase its exposure to major city, open A1 retail parks, with flexible planning consent. The purchase met its requirement and provides asset management opportunities in the future.
- The challenge was to invest in open A1 retail parks in large centres, and to provide maximum returns for the fund. As the market was improving for this sector, it was key for the client to invest the money well and quickly.
What we did
- We identified this off market opportunity
- We negotiated the purchase price
- We provided occupational market advice through our out of town retail agency team
- Trading patterns of the individual tenants were identified through a tenant audit
- A building survey was undertaken to satisfy the client on the condition of the scheme
- We provided an independent planning view on the success of obtaining food store consent.