St Modwen Developments has sold the second phase of the Orbital Retail Park in Cannock, Staffordshire, for £4.725m to an investment subsidiary of Commercial Union. The deal reflects a net initial yield of 7.25%.
The second phase, which will begin trading in Novermber 1997, comprises 2,979 sq m (32,000 sq ft) and is let to Essex Furniture, Powerhouse and CarpetWorld at £118.40 per sq m (£11 per sq ft). The 25-year leases include five yearly upwards only rent reviews.
The Orbital Centre is a 40-acre (16.2ha) mixed development comprising a 7,432 sq m (80,000 sq ft) Sainsbury supermarket; 11,055 sq m (119,000 sq ft) of non-food retail; 4,691 sq m (50,500 sq ft) of industrial warehousing; and sites sold for hotel and pub developments. St Modwen has a further 4.05 ha (10 acres) available on the Park for fast food, car showroom and leisure development.
Fuller Peiser advised St Modwen while Commercial Union Properties and Donaldsons acted for the purchaser.
EGi News 05/08/97
