Ashfield Land developers of the new Regent Circus development in Swindon have exchanged contracts in a record-breaking deal with UK Commercial Property Trust (UKCPT) for the purchase of the new leisure development.
The £40.5 million price reflects a net initial yield of 4.86%, which is a record for this property investment market cycle and demonstrates the high level of institutional demand for the scheme. The scheme will generate around £2.1m a year in rental income from leases with an average length of 20 years to occupiers with a sound covenant base.
In developing Regent Circus – an exciting 97,000 sq ft leisure development – Ashfield Land have helped to transform a neglected area of Swindon and provide the catalyst for further regeneration.
The development is 94% pre-let and is anchored by a Morrisons supermarket and Cineworld six-screen all digital multiplex cinema. Six of the seven restaurant units are already let and the line-up includes Nando’s, Prezzo, Ask, Gourmet Burger Kitchen, Coal Grill and Bar and Jimmy’s World Grill.
The sale completion is set for November when work on the development will complete.