(Sharecast News) - Real estate investment trust UK Commercial Property has acquired Trafford Retail Park from Peel L&P for £33.0m.
UK Commercial Property said on Tuesday that the 12-acre site, constructed in 1999 and host to a number of retail and food and beverage outlets, will deliver an annual income of roughly £2.5m per year, with an average rent of £17.17 per square foot across all units.
The FTSE 250-listed outfit added the site benefits from high traffic and footfall due to its proximity to TraffordCity, which attracts 2.5m visitors per year and has an estimated catchment of around 2.4m people, with 1.5m within a 20-minute drive.
UKCP added that the site's position on junction 10 of the M60 and its "substantial food and beverage offering" means it also provides "a quasi-motorway service station function".
Fund manager Kerri Hunter said: "This deal presents us with an opportunity to strengthen our portfolio and enhance income through the acquisition of a well-located retail park with a high-quality tenant base and impressive footfall in one of the UK's premier shopping and leisure destinations.
"While some parts of the retail sector have struggled in recent years, Trafford Retail Park is primarily let to discount focused and convenience led retailers, which have proven resilient and continue to perform well. As a diversified REIT, we benefit from the ability to look for assets across a range of sectors that offer accretive returns, enabling us to deliver value and income to our investors."
As of 1035 BST, UK Commercial Property shares were down 0.13% at 76.20p.
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