Central and Rooksley Retail Park comprises a substantial terrace of units and a small stand-alone unit to the south of Patriot Drive, and a large stand alone to the north. The site area extends to approximately 8 acres. The total floor area is 109,838 sq ft. There are 458 car parking spaces.
The property, which is held freehold, is located in a prominent position facing Grafton Gate and the A509 Portway. It is close to the Central Milton Keynes commercial area and the railway station.
Let to national multiples including Pets at Home, Hobbycraft, Next, Halfords, and Go Outdoors.
Structure
In 2009 First Alliance Properties sourced and negotiated the off-market acquisition, introduced the investor, and was then responsible for developing and improving the asset. Day-to-day property management and consultancies for project management, architecture and planning were outsourced. First Alliance Properties was remunerated through regular asset management fees and a profit participation above an agreed return threshold.
Asset Management/Value-Add
Secured the property “off market” at an historically attractive yield.
Planning permission obtained for a new unit of c.7,500 sq ft with traffic circulation improvements, achieved within three months of completing the purchase.
Letting to Next Group plc following the JJB Sports CVA at a rent which strongly supported the ERV of the scheme.
Letting to Go Outdoors at a record rent for one of their stores, following demise of Habitat.
An early sale was recommended in August 2010 prior to various tenant defaults and consequential capex. The negotiated price would have delivered an ungeared IRR of over 50%. The investor's Board decided to hold in anticipation of an improving retail market and enjoy the high income return.
Exited in January 2013 by exercising put option in joint venture agreement.
