DTZ snaps up London retail park from Lothbury
DTZ Investors has acquired a central London retail park from Lothbury for £37m.
Anchor Retail Park in Mile End is one of the few remaining inner-London retail parks, situated in Zone 2 and just over a mile from the City of London.
Set across a 3.2-acre site, Anchor Retail Park comprises three retail units totalling 45,385 sq ft of lettable space. The units are fully let to Asda, Halfords, and Currys with all leases expiring in 2025.
DTZ Investors said renewal prospects at the scheme are strong, with attractive market dynamics showing reversionary rents, a depth of occupier demand, and limited direct competition.
The asset also includes a residential block of 11 houses let as homes of multiple occupancy, which DTZ said are rented at an affordable level indicating headroom for growth over time.
HampsonWall acted for DTZ Investors, whilst Savills acted for Lothbury.
Ben Haller, director at DTZ Investors, said: “Anchor Retail Park is a great strategic fit so we are delighted with this deal to close the year. It’s rare to find underdeveloped plots in London capable of delivering attractive income returns alongside scope for significant capital enhancement. The optionality to pivot the site between existing use and alternative use is particularly appealing. The asset adds further quality to the fund’s retail warehouse weighting following numerous other acquisitions in recent years and with appetite for more.”
Chris Hampson, partner at HampsonWall, added: “Congratulations to DTZ Investors for the acquisition of this prime mixed-use asset within walking distance to the City of London. The manifold strengths of this asset were illustrated by a particularly competitive marketing campaign, which we are delighted to have supported DTZ Investors navigate it successfully.