Avison Young has disposed of Pavilion Retail Park in Brighton on behalf of Aviva Investors, a transaction that is seen as defining prime for the out-of-town retail investment market. After a competitive bidding process, the freehold interest was sold to CCLA for £32 million, reflecting a net initial yield of 5.53%. This was ahead of the asking price, which reflected 5.75%.
This prime retail asset comprises a 76,827 sq ft open A1 (part food) consented scheme, which has recently been comprehensively refurbished. It is fully let to B&Q, Aldi, Halfords, Hobbycraft and Costa with an attractive WAULT of circa 13.5 years. The property produces an annual rental income of £1,890,093 and the Aldi lease is subject to 5 yearly RPI linked rent reviews (1%-3% per annum compounded). The property has strong longer term potential for residential redevelopment and is situated adjacent to the former Preston Barracks site, which is being redeveloped by U+I, the University of Brighton and Brighton & Hove City Council.
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