Acquisition of Chorley Shopping Centre

Orchard Street buys Chorley Shopping Centre for Special Situations Fund

Orchard Street Investment Management LLP, the specialist commercial property investment manager, has acquired the freehold of Market Walk Shopping Centre, Chorley, Lancashire, for its UK Special Situations Fund for £22.25 million, reflecting a net initial yield of 7.5%. The vendor is RREEF UK Retail Property Ltd.

The 103,000 sq. ft. centre, the prime retail offer in Chorley, is fully let with 33 tenants including Boots, New Look, Poundland, B&M and Iceland.

The centre presents Orchard Street with numerous asset management opportunities including lease extensions and the potential to develop up to 75,000 sq ft of ‘big box’ format retail space on the adjacent car park in conjunction with the Local Authority.

This is the sixth acquisition for the Fund, bringing the total of acquisitions to date to £128 million. The Fund has so far acquired The Royals shopping centre in Southend, three retail parks in Chelmsford, Bournemouth and Bangor, as well as offices at 60 Cannon Street in the City of London.

Knight Frank advised Orchard Street on the acquisition and JLL advised the vendor.

Commenting on the acquisition, Barney Rowe, Partner at Orchard Street Investment Management, said:

"This acquisition is a great opportunity for the Special Situations portfolio. It provides an attractive blend of a modern freehold scheme in an above average town with numerous opportunities for Orchard Street to add value whilst also benefiting from secure income from the main anchor tenants, which in themselves provide in excess of 10.5 years of income without break."