LONDON – 14 June, 2016 – CBRE Global Investors has completed the acquisition of the retail development at Southampton General Hospital for £11.5 million, reflecting a net initial yield of 6.2 percent per annum. The seller is specialist healthcare property company, Prime, which developed the scheme with University Hospital Southampton NHS Foundation Trust (UHS) under its Commercial Estates Development Partnership. Griffiths Eccles acted for the purchaser.
The 20,000 square foot property is a redevelopment of the hospital entrance and retail mall to create a welcome centre that serves as the main hospital reception and seven retail units totaling 11,900 square feet. The development was recently completed, and the retailers are now trading.
Brands in the retail mall include M&S Simply Food, Costa, WH Smith, Subway, The Stock Shop and an M&S Café. The majority of the retailers will be operated by Compass Group UK & Ireland, part of the UK’s largest food services provider. The property is held on leasehold from UHS.
The property is part of one of the UK’s largest hospitals two miles to the north of Southampton city centre in the Shirley area. It receives a footfall of approximately seven million people a year. This includes staff of around 10,500, and over 740,000 patients annually, as well as over 120,000 emergency visits.
James Horgan said, “This acquisition fits into our strategy of acquiring ‘high lease value’ investments, with our clients wanting to invest in properties providing long-term inflation-linked income streams let to strong covenants. We are delighted to have secured this opportunity which will help to deliver a predictable cashflow to our client whilst enabling the hospital to improve its retail offer and improve the patient, visitor and staff experience."
The seller, Prime, said, “We are delighted to have been able to bring these leading brands to the hospital. In doing so, we have provided greater quality and choice and transformed the main entrance to be fitting of the hospital’s reputation for excellence.”
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $89.7 billion in assets under management* as of March 31, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
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