DTZ Investors has purchased Purley Way Retail Park in Croydon from Oval Real Estate for £59m.
The retail park features five units consisting of 126,410 sq ft of lettable floor space over an 8.6-acre site, and is home to Aldi, M&S, Starbucks, Smyths, and Currys.
DTZ says the scheme will produce a net rent of over £3.4m per year, while further income will be derived from existing solar panel and electric vehicle charging infrastructure.
Three quarters of the retail park’s lettable space is new or has been newly refurbished, with the M&S unit recently benefitting from a multi-million pound works package.
Green & Partners and DTRE acted jointly for the vendor, while Hampson Wall represented DTZ.
Ben Haller, director at DTZ, said: “The underlying location gives flexibility for alternative land uses over the long term whilst the quality of physical real estate immediately strengthens the fund’s responsible investment objectives.”
Joe Wall, director at Hampson Wall: “We are beginning to see a resurgence in institutional demand for the prime retail warehouse assets over the past few months which DTZ Investors has spearheaded with this acquisition. This sort of asset is rarely available and offers defensive income in a core location to counteract current market risks.”