May 2, 2012
Salmon Harvester Opportunity Fund, the £150 million investment fund formed by Salmon Harvester Properties and NFU Mutual, has acquired the St Andrews Square shopping centre in Droitwich Spa, Worcestershire for £19.8m. This represents an initial yield of 8.2%.
The 157,000 sq ft centre is anchored by a 30,000 sq ft Morrisons supermarket and comprises 37 other retail units with parking for 385 cars in two surface level car parks. Other retailers include Wilkinson, Argos, Boots, WH Smith and M&Co.
The majority of the retailers are on standard institutional leases and the average unexpired term is over 12.5 years. The current roll is in excess of £1.7 million a year.
Matthew Meaden, fund manager, Salmon Harvester Opportunity Fund, comments: “St Andrews Square is the dominant shopping centre in Droitwich Spa, an affluent spa town with excellent demographics.
“There are a number of opportunities for active asset management and the potential for extending the retail and leisure offer through the regeneration of the Covercroft area within the site.”
Hoddell Stotesbury Morgan represented Salmon Harvester while Jones Lang LaSalle advised the vendor.