A retail park in south Hampshire has been bought by a local authority through property consultancy Vail Williams LLP. In an off-market deal, Fareham Borough Council acquired the freehold of Broadcut Retail Park, Wallington Way, Fareham, from a private property company for below the quoting price of £4.87 million.
The deal was negotiated by Tim Clark, a partner and retail specialist for Vail Williams’ Solent region, on behalf of the local authority.
Broadcut has three occupiers on a range of leases – PureGym, bed and mattress retailer Dreams and Costa Coffee.
It is the second acquisition this year by Vail Williams of a retail park on behalf of a local authority in Hampshire.
Acting on behalf of Eastleigh Borough Council, Chestnut Avenue Retail Park in Chandler’s Ford was acquired for nearly £13m; occupiers are Aldi, Poundstretcher, Dreams and American Golf.
Clark said: “Vail Williams has provided Fareham Borough Council with advisory services over a number of years and we spotted a revenue opportunity for the local authority in an off-market deal.
“Broadcut Retail Park, is a fully occupied retail park with three occupiers and a healthy revenue stream, forming part of a wider retail park which includes Sainsbury’s and Argos. The Sainsbury’s is a consistent top-10 performing supermarket. Following positive negotiations a sale price was agreed by both parties for less than the quoting figure of £4.87m.”
He added: “Speaking generally, and based on industry research, local authority investment in UK commercial property totalled £5.3 billion between 2013 and 2018. Long-term rental streams are attractive to councils, helping to generate income to support council services. Out-of-town retail parks appear to be more resilient than high streets.”
Councillor Seán Woodward, executive leader of Fareham Borough Council, said: “The Council’s policy is one of maximising value for money by acquiring commercial properties that provide a good income stream and maximise return on investment. Broadcut Retail Park fits the bill perfectly.”
Christopher Dee LLP investment property acted jointly with Vail Williams for Fareham Borough Council in the acquisition.
Vail Williams works with landlords, occupiers, developers and property investors.