Savills is looking for a buyer for Castle Quarter shopping centre in Norwich.
The agent is seeking offers over £23.5m, representing a net initial yield of 10% and a capital value of £61 per sq ft.
The 385,158 sq ft shopping centre generates an annual net operating income of £2.5m and has a mix of 75 retail and leisure operators, with key tenants such as TK Maxx, Superbowl, Vue and Boots. It has an unexpired lease term of nine years.
In addition, its 791 parking spaces contribute 42% of the total gross income and generate £1.5m in net income.
Earlier last month, ArrowHeadz, a darts-led social hub, signed a deal to open its first UK outlet at the shopping centre, taking 1,130 sq ft in the leisure zone of the centre for five years.
The asset is being sold on behalf of the joint LPA/fixed-charge receivers to previous owner InfraRed Capital Partners. It is asset managed by RivingtonHark and property managed by Munroe K.
Toby Ogilvie Smals, director in retail investment at Savills, said: “The offering of Castle Quarter comes at an opportune moment in the UK retail investment market. Following a resurgence in confidence, investment volumes are recovering, with a notable desire to capitalise on record-high yields.
“Castle Quarter, with its prime location and secure income, aligns well with this trend, offering investors a rare opportunity to acquire a high-quality asset as yields harden in anticipation of future interest rate cuts.”
Image © Savills
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