Southampton: CBRE Global Investors acquires retail development
CBRE Global Investors has acquired the retail development at the Southampton General Hospital for £11.5 million from Prime, a specialist healthcare property company, which developed the scheme with University Hospital Southampton NHS Foundation Trust (UHS) under its commercial estates development partnership.
Griffiths Eccles acted for the purchaser. The investment, reflects a net initial yield of 6.2% per annum.
The 20,000 sq ft property is a redevelopment of the hospital entrance and retail mall to create a welcome centre which serves as the main hospital reception. The mall contains seven retail units, which are already trading and let to tenants M&S Simply Food, Costa, WH Smith, Subway, The Stock Shop and an M&S Café. The majority of the retailers will be operated by catering giant Compass.
James Horgan of CBRE said: “This acquisition fits into our strategy of acquiring ‘high lease value’ investments, with our clients wanting to invest in properties providing long-term inflation-linked income streams let to strong covenants. The deal will enable the hospital to improve its retail offer and improve the patient, visitor and staff experience.”
Southampton hospital is one of the UK’s largest, receiving around seven million visitors a year. It employs around 10,500 of staff, and has over 740,000 patients and 120,000 emergency visits annually.
Credit: CoStar
