The Cuckoo Bridge Retail Park in Dumfries has been acquired by property investor NewRiver Retail for £20.2 million.
The 130,000 square foot site, previously owned by British Land, is fully occupied and counts the likes of Dunelm, Homebase, KFC, Laura Ashley and Poundstretcher among its tenants.
NewRiver said Cuckoo Bridge, the “dominant” retail park in Dumfries with 550 car parking spaces, benefits from its close proximity to the A75 and a 24-hour Tesco supermarket.
Property director Allan Lockhart said: “The acquisition demonstrates our ability to grow the portfolio through our carefully selected acquisitions in line with our focused business model.
“This favourably located asset is well established in the local community, providing everyday necessities for the local population. Cuckoo Bridge presents excellent opportunities to generate attractive cash on equity returns by driving income and capital growth through the company’s active asset management and risk-controlled development.”
NewRiver said the purchase equates to a net initial yield of 7.05 per cent, with net rental income of £1.5m a year.
The Aim-quoted firm is led by chief executive David Lockhart, who founded Halladale, the Glasgow-based property investor and developer that was bought by Australia’s Stockland for £171m in 2007.
British Land also has stakes in Edinburgh’s Fort Kinnaird retail park and Glasgow’s Fort.