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LONDON-Hammerson has bought Drakehouse Retail Park in Sheffield for £60.2 million ($102.3 million) from The Junction Limited Partnership.The deal reflects a net initial yield of 5.4%, upon settlement of outstanding rent reviews and an equivalent yield of 5.9%.

The 230,000 sf retail park built in 1997 is the largest in Sheffield and is expected to generate a rental income of about £3.3 million ($5.6 million) annually. The average unexpired lease term is 19 years.

The scheme comprises 18 units and 834 car park spaces. Retailers represented include Focus DIY, Co-op Homestore, Currys, Comet and Carpetright. In addition there is a McDonald’s Drive-Thru restaurant. The scheme also has a partially open planning consent.

The acquisition will be financed from Hammerson’s existing resources. Chief Executive John Richards said: “The retail park sector continues to perform very strongly. At Drakehouse Retail Park there are further opportunities to improve the income through rent reviews and the introduction of new tenants. We continue to make good progress in our retail parks business and this acquisition follows successful recent planning decisions, with consent secured for Cyfarthfa Retail Park, Merthyr Tydfil and St. Oswald’s Park, Gloucester.”

Hammerson was represented by FPD Savills. The vendor was represented by Montagu Evans.

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