Stevenage Leisure Park sold for �40m
Property deals worth tens of millions were announced today as major investors looked to Stevenage to boost their portfolios.
Stevenage Leisure Park has changed hands after Legal and General Property signed a deal with Aviva Life and Pensions UK to buy the complex for �40m.
The 18,600m2 site has 17 units including the 16-screen Cineworld, David Lloyd health club and a Hollywood Bowl. Annual rents will return a 6.5 per cent net initial yield.
Mark Russel, fund manager at LGP, said the park was an attractive alternative to in traditional investments: “The leisure sector offers attractive risk-adjusted income streams with a blend of fixed rental increases and reviews to open market rental value.”
In a second major deal, the B&Q retail warehouse on London Road is now wholly owned by Orchard Street Investment Management after it bought out the 50 per cent share owned by Scottish Widows for �14.2m on behalf of St James Place Wealth Management.
The two-storey 133,000 sq ft unit is currently let to B&Q at a rent of �14.25 per sq ft for a further 16 years. The net initial yield on the property is 6.32 per cent.