Cordatus Property Trust buys Colchester Retail
The following story, was released by Co-Star on 03/11/16:
Cordatus Property Trust has bought a retail block in Colchester, Essex from Glanmore Property Company
The Cordatus Property Trust is a “programmatic venture” between CBRE Global Investment Partners (CBRE GIP) and Cordatus Real Estate (Cordatus).
The Trust was launched in December 2015 and has an initial funding of £150m. The vehicle is targeting investment opportunities in strong micro locations, primarily in UK regional markets, with typical lot sizes of between £3m to £15m, to generate above market income distribution.
CPT has acquired 48-50 High Street and 84-86 Culver Street, Colchester. This modern retail block is let to occupiers including Santander, Brighthouse, Paddy Power and Poundland and has frontages to both the High Street and also to Lion Walk Shopping Centre which provides the prime retail provision within Colchester. The investment has a good WAULT of 7.75 years and was acquired for £5.1m equivalent to a 7.4% net initial yield.
Gavin Munn, Director at Cordatus Real Estate, said:
“This latest purchase demonstrates our strategy to seek well-let assets with attractive income yields in locations that show clear promise and the opportunity for improvement. In this case, that improvement will be driven by a new Primark store opening opposite our property, contributing to an expected uplift in footfall and value.”
KLM Retail acted for Cordatus and CBRE acted for Glanmore.