Prupim has confirmed the purchase of the 381-space Carlton Street Car Park, phase two of McLaren Life’s 275,000sq ft regeneration development at Dolphin Square in Weston-Super-Mare, for the sum of GBP9.5m.
The property is held on a 200-year lease from North Somerset District Council and is underlet to North Somerset District Council on a new 45-year lease.
The multi storey car park was constructed and operated by McLaren Life until it was leased to the council and acquired by Prupim.
Demolition of phase three has commenced and will see the development of over 200,000 sq ft of retail and leisure, including a mix of cinema, bowling, restaurants and clothing retailers with construction due to start in the summer of 2013 due for completion in mid 2014.
Steffan Francis, director, fund management, Prupim, says: “This is an ideal acquisition for us next to a proposed shopping centre. With a stable tenant providing increasing levels of income linked to RPI, the Carlton Street Car Park possesses the criteria we look for to enhance our overall portfolio by providing predictable returns over the long term.
“We are especially pleased to have secured this long lease investment with North Somerset District Council in co-operation with McLaren Life. There are substantial sums available from insurance companies and pension funds for investments with these characteristics; the sale and lease back is a simple, tried and tested route for local authorities to secure such inward investment.”
Simon Berry, managing director, McLaren Life, says: “The sale of the developments in phase one and two marks significant progress with the regeneration of Dolphin Square. From the level of interest from committed operators, we are positive about the next phase of the development and look forward to starting on site later this year following demolition”.
Montagu Evans acted on behalf of Prupim.
