Orchard Street buys Beehive Centre, Cambridge from British Land for £109M2nd October 2012

Orchard Street Investment Management LLP has acquired The Beehive Centre in Cambridge from British Land for £109.2 million, which reflects a net initial yield of 5.25 per cent.

The 238,000 sq ft part open consented retail scheme was acquired by British Land in 1998. The scheme, located near Cambridge city centre, comprises 16 retail units and is anchored by a 70,000 sq ft Asda food store. Other retailers include M&S Simply Food, Toys R Us, TK Maxx, Carpetright, Dreams, DW Sports Fitness, Next Home, B&M Retail, Maplin and HomeSense. The park is fully let at an average rent of £25 per sq ft with an average lease length of 14 years.

Charles Maudsley, Head of Retail for British Land, said: “The Beehive Centre is a great example of British Land’s asset management capabilities. We have completed seven lettings in the past three years and built two new units. As a result, the park’s entire original tenant line up has been completely replaced during our ownership. This sale also demonstrates the strength of institutional demand for quality retail parks.”

Chris Bartram, Chairman at Orchard Street, said: “Opportunities to acquire major well let retail assets are rare, and in this case the property has the added advantage of being in a dominant position in one of the most vibrant and fast growing cities in the UK. We feel the property is a great addition to our client’s portfolio which increases the volume of shopping centres and parks that we manage to £1.4 billion and we are sure that it will make a very positive contribution to Fund performance, as well as remaining a key element within the shopping offer of the city of Cambridge for the long term.”