Eastleigh Council snaps up retail park

Property Week
Helen Crane

The retail park was Paloma’s largest retail asset, and the sale represented a yield of 5.2%.

Paloma Real Estate Fund I acquired the retail park as part of a portfolio in January 2016 and achieved planning consent for a change of use to allow the sale of food. It carried out a comprehensive £1.8m refurbishment of the former Homebase store which is now occupied by Aldi and Poundstretcher. The other tenants are Dreams and American Gold.

Jack Pitman of Paloma Capital said: “In such a challenging retail market we are delighted to have sold our largest retail asset so successfully, following the comprehensive refurbishment of the vacant former Homebase store at a cost of £1.8m for Aldi and Poundstretcher”.

Eastleigh Borough Council leader Keith House said: “This acquisition of Chestnut Avenue Retail Park demonstrates the council’s continued commitment to invest in the borough with the intention of encouraging regeneration, helping to protect and create local jobs and generating income to help support council services.”

Avison Young acted for Paloma Capital and Vail Williams acted for Eastleigh Borough Council.