Realty Income acquires £220m trio of retail parks from AshbyCapital
American real estate investment trust Realty Income has acquired a portfolio of three UK retail parks from AshbyCapital for more than £220m.
The portfolio – which was assembled through separate transactions between 2015 and 2019 – includes assets in Swansea, Leeds, and Glasgow.
The largest of the retail parks is Morfa Shopping Park, located near to Swansea’s Liberty Stadium. The 345,000 sq ft scheme is occupied by retailers including Next, JD Sports, and B&Q.
Also included in the portfolio is Westside Retail Park in Guiseley, north west of Leeds. The 120,000 sq ft scheme is home to the likes of Currys, Sports Direct, Next, and Tk Maxx.
The third and final asset included in the acquisition is Abbotsinch Retail Park in Paisley, near Glasgow. Spanning 265,000 sq ft, the scheme is anchored by B&Q, Dunelm, and DFS.
The acquisition follows a £82.5m refinancing of the retail parks, put in place by German Bank Deutsche Hypo in summer 2024.
Since acquiring the parks, AshbyCapital has worked with asset manager Quadrant to improve the customer offer, with upgrades including landscaping, public realm projects, and EV charging.
Tom Smithers, property director at AshbyCapital, said: “We invested in these parks at a time when many investors had turned their back on physical retail. Yet the right type of retail, in strong locations and let to retailers with a multi-channel approach and a relevant offer still serves a significant role in communities across the UK.
“Having focused on quality shopping parks that dominate in their local areas and having invested to drive significant improvements and increase rental returns, we’re pleased to sell this portfolio against an improved backdrop for the retail sector.”
John Maddison, partner and head of asset management at Quadrant, added: “This sale concludes a successful nine-year partnership with AshbyCapital that adds to our strong track record of working with investors to drive the performance of out-of-town retail parks.
“As the only truly independent and privately owned specialist operating partner in this sector, we look back with pride at the gradual but significant transformation we’ve delivered across these assets, increasing rentable space, improving the experience for customers and securing new tenants and seeing rental growth ahead of the wider market.
“We leave all three assets as exemplars for the sector, in far better physical and occupational condition than when we first started working on them, and strongly positioned for ongoing success.”