Orchard Street acquires St Andrew’s Quay Retail Park in Hull

Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of St Andrew’s Quay Retail Park, Hull’s leading out-of-town retail park, for£95.55 million, reflecting a net initial yield of 6.1%. Orchard Street acquired the asset on behalf of Orchard Street UK Prime Property Partnership from Threadneedle Investments (‘Threadneedle’).

St Andrew’s Quay Retail Park is a 327,000 sq ft modern, multi-let retail warehouse scheme. Threadneedle acquired the park in September 2009, and has successfully concluded a number of lettings during its ownership so that it is currently fully let and benefits from a WAULT of 11.1 years. Anchored by a B&Q Warehouse, let on a 16 year unexpired RPI linked lease, the park also has a number of other retailers onsite including Halfords, Curry’s, Sofaworks, DFS, Carpetright, Pets at Home and PC World as well as restaurant chains Frankie & Benny’s and Pizza Hut.

Situated two miles to the west of Hull city centre and with frontage onto the Humber estuary, the park benefits from its prominent position on the A63 dual carriageway which connects to the M62 motorway, the main arterial route into Hull from the south and west. It is also located in close proximity to a 100,000 sq ft Makro Cash and Carry and a potential dockside residential development site.

Hull has an estimated retail catchment area of 622,000 and in 2013 was namedas the winner of the UK's City of Culture 2017. This is expected to deliver a £60 million boost to the local economy and help to attract an estimated seven million visitors to the city in 2017.

Barney Rowe, Partner at Orchard Street, said:

“St Andrew’s Quay is a top quality, well-let and well-located retail park that has established its position as Hull’s premier out of town shopping destination. With Hull’s economy set to see a significant influx of capital expenditure in the coming years, we believe the asset provides multiple asset management opportunities to maximise income in an increasingly competitive market through rent reviews, regearing leases and enhancing the retail and leisure mix.”

Orchard Street was advised by Savills and Threadneedle was advised by Morgan Williams.