Sorbon Estates, the commercial property investment arm of the Shanly Group of companies, has acquired Reading Link Retail Park from an investment fund advised by LRE Capital for £16.3 million.
The 69,139 sq ft park, which is situated on a six-acre site fronting the A33 and is let to Steinhoff Group, Magnet, Poundworld, Iceland Foods, Home Bargains and Matalan, produces £1,082,538 per annum, with average lease lengths to expiry of 8.5 years.
Offering 320 customer car spaces, Reading Link Retail Park has become a popular shopping destination, following a partial refurbishment and introduction of new tenants into the scheme. Sorbon Estates which is headquartered in Beaconsfield, Buckinghamshire, is to continue to actively manage the property with a view of extending and introducing new uses into the scheme.
Mark Allaway, commercial acquisitions director at Sorbon Estates, commented: “Reading, in particular the southern area along the A33 corridor, is seeing exponential growth in both commercial and residential development and investment. In addition, the station’s £900m improvement works and imminent arrival of Crossrail will strengthen Reading’s appeal as an attractive place to live and work. Reading Link Retail Park has a strong tenant line up, and with passing rents of between £13-£16 per sq ft we feel there is rental growth potential, together with the opportunity to further expand the retail offering.
“We continue to grow and diversify our commercial portfolio in the Home Counties, with further recent acquisitions in Henley, Weybridge, Thame and Maidenhead.”
Whitmarsh Holt Young acted for Sorbon Estates and Harvey Spack Field represented the vendor.