LONDON (Alliance News) - Property developer Capital & Regional PLC on Friday said it has purchased a third property in Hemel Hempstead and said it now has "effective control of the town centre retail offer".
Capital & Regional said it bought Fareham House in Hemel Hempstead in an off-market transaction for GBP7.8 million, adding the property is adjacent to the Marlowes shopping centre and Edmonds Parade, which it acquired in January and February.
The property developer said it now has the opportunity to consolidate all three into a single dominant town centre scheme, which, in total, would provide 340,000 square feet of retail space and 1,200 car parking spaces.
Capital & Regional said the total acquisition cost for the three properties was GBP53.8 million, representing a yield of 7.0% on the retail space. All three were funded using existing cash, a small draw-down on the developer's bank facility and a five-year non-recourse loan with the Royal Bank of Scotland of GBP26.9 million.
"We have worked hard to acquire Fareham House off-market and the transaction represents a considerable success in the opportunity that we now have in Hemel Hempstead, a strong south east commuter town with significant growth potential that has, historically, been under-invested in," said Chief Executive Hugh Scott-Barrett.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Capital & Regional (CAL)