30 Sep 2010 07:00
DEVELOPMENT SECURITIES SELLS £13.15M GRIMSBY INVESTMENT
Development Securities PLC, the UK's leading property development and investment company, today announces the sale of its House of Fraser department store on Victoria Street, Grimsby for £13.15 million to a pension fund managed by Rockspring Property Investment Managers.
The 92,318 sf building is let to House of Fraser until 2039. The disposal reflected a net initial yield of 7.09%.
Matthew Weiner, Investment Director at Development Securities, said,
"In disposing of this asset we are crystallizing the significant increase in its value which has occurred since we acquired it in July 2009. We feel that the market momentum behind this recovery in capital values has now peaked and we have identified a number of opportunities for reinvestment where there is greater scope for our asset management skills to be applied to generate out-performance."
The sale has allowed Development Securities to recycle equity which will be used to pursue assets with higher return potential and greater scope to add value.
Development Securities acquired the freehold of the property for £10.5 million in August 2009.
Enquiries:
Michael Marx/Matthew Weiner
Development Securities PLC Tel: 020 7828 4777
Mallika Basu/Lucy Grimble
The Communication Group plc Tel: 020 7630 1411