Retail World, Team Valley, Gateshead
Client: Land Securities
Instruction: Investment purchase
Chase & Partners were approached directly by the freeholder of Team Valley Retail Park in 1996, and asked whether any of our clients would be interested in purchasing this investment, "Off the market". We identified that this investment would be suitable for Land Securities, who had an active requirement for a dominant out-of-town retail park, and we successfully introduced the opportunity to them.
Retail World, Team Valley, Gateshead was developed by Stadium City Limited and comprised approximately 370,000 sq ft of retail accommodation in 24 units. Tenants included Texas, Comet, MFI, Allied Carpets, JJB Sports and Currys.
A purchase price of £47,000,000 was agreed, representing a net initial yield of 5.95% on a net income of £2,872,017 per annum. We were of the opinion that Retail World would provide our client with substantial growth prospects, with opportunities to improve the tenant mix, extend the park and drive rents upwards.
We advised Land Securities throughout the transaction, agreeing terms with the vendor, monitoring legal formalities and preparing a detailed purchase report and valuation. We subsequently advised Land Securities on asset management.