Acting for a private client, Avison Young Retail have acquired Dallow Road Retail Park in Luton from Hammerson for £23.9 million, reflecting a net initial yield of 7.67%.
The scheme is let to B&Q (100,951 sq ft) on a lease until Februaury 2031 at a rent equating to £17.75 per sq ft and Aldi (11,817 sq ft) on a lease expiring in June 2020. Aldi have signed an agreement for lease on a new 19,105 sq ft unit (to be constructed) on a 20 year lease with 5 yearly RPI linked rent reviews.
B&Q has a ‘bulky goods’ planning consent, with Aldi having an open A1 (including food) consent. The site totals circa 10.4 acres and there are approximately 600 car parking spaces.
CBRE acted for the vendors.
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