International investment group, Aberdeen Asset Management, has sold a Tyneside retail park for £46.25m in an off-market deal.
Newcastle Shopping Park, three miles from the city centre, has been acquired by M&G Real Estate. The London-based M&G group is listed as one of the world’s top 25 real estate fund managers with more £21.2bn invested in properties across Europe, North America and the Pacific rim.
Commenting on its latest North-East purchase, M&G’s real estate deputy manager, Justin Upton, said: “Investor appetite remains strong for high performing retail warehouse product in core locations, where rental growth is set to grow due to increasing competition between retailers.
“We believe Newcastle Shopping Park benefits from this and so fits well into the fund’s existing high quality retail warehouse portfolio.”
The 218,143 sq ft retail scheme — close to the A187 and within walking distance of two Tyneside Metro stations — is anchored by supermarket giant Asda. In recent years it has attracted a raft of high-profile retailers including Marks & Spencer, B&M, Carpetright, Pets at Home, Argos, DW Sports and TK Maxx.
“Asda in Newcastle Shopping Park is the local area’s major food store,” Upton added. “This dominance is coupled with a growing local catchment and a positive trading profile for all retailers onsite. As a result, we feel the fundamentals are in place for this scheme to provide strong medium and long-term rental growth.”
Of the 13 units on the retail park, two are currently vacant. The biggest covers 14,956 sq ft, with a smaller 10,000 sq ft unit next door to the Marks & Spencer outlet.
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