Gretna Gateway Outlet Village acquisition

Equity investor and asset manager Northridge Capital have sold Gretna Gateway Outlet Village to Orchard Street Investment Management LLP for £40 million. Orchard Street has acquired the property for a major investor client as part of it's £1,000m UK portfolio. The price represents a net initial yield of c.6.5%.

Late last year saw the opening of the 50,000 sq ft Phase II extension, which took the premium brand outlet scheme to c.125,000 sq ft. The successful Phase II letting is anchored by Marks & Spencer, which added to the existing tenant line-up which includes the likes of Polo Ralph Lauren,

LK Bennett and TAG Heuer. The property is almost fully let.

Ray Terrafranca (Northridge MD) said:

"Since acquiring a troubled asset in 2002, we focused on getting our tenant relationships and trading right. This was imperative prior to attempting what most saw as an ambitious Phase II development. The success of Phase II provides the new owner with a platform for growth over the next few years ". Northridge Capital was advised by Donaldsons.

Orchard Street's Chris Bartram added:

"We are delighted to have acquired this asset, which we believe offers our client an interesting diversification within the retail sector, with good growth prospects. Northridge have done a first class job of expanding the critical mass of the retail offer at the property during their time of ownership”

CBRE, Keneth Peters, and CHD Property advised Orchard Street on the acquisition.