Britannic Sells Reading Retail Warehouses

LONDON-Britannic Asset Management has sold the majority of its holdings at Forbury Park, Reading, Berkshire in three separate transactions on behalf of Alba Life. The fund purchased the entire site from BP pension fund in 1997 and redeveloped it with a mix of retail warehouse and industrial warehouse uses scheme.

The existing Homebase and Toys ‘R’ Us units totalling 79,000 sf have been sold to Scottish Mutual for £15.45 million ($21.5 million) reflecting a net initial yield of 6.9%. Both units have been the subject of rent reviews achieving rents in the region of £15.00 ($21) per sf.

Morley Fund Management on behalf of Norwich Union Linked Life Fund has bought the latest retail warehouse phase of 47,500 sf. Tenants include Powerhouse and JJB Sports together with a McDonalds drive-thru. Rental levels are between £15.50 ($21.85) and £17.00 ($24.00) per sf. The purchase price of £13.15 million ($18.5 million represents a net initial yield of 6.12% and an equivalent yield of 6.5%.

Rugby Estates has purchased a vacant site formerly occupied by the Reading Bus Company for £1.35 million ($1.9 million) and is currently working up proposals for the redevelopment of the site. And Britannic still holds the industrial warehouse element of the scheme. King Sturge advised Scottish Mutual and Morley while Alba Life was represented by Chesterton.