Charterhouse Property Group is pleased to announce the sale of the ground floor retail at Station House, Milton Keynes.
Charterhouse Property Group acquired the parade in August 2019, recognising the potential let to grab-and-go F&B operators into several vacant and short-let units. The site comprised a parade of 10 retail units to either side of the main entrance of Milton Keynes train station.
Soon after, with the arrival of COVID-19, there followed a tough period for travel retail. However, the strength of the location meant that the asset management strategy survived the shock. During ownership, Charterhouse managed to regear all the existing major tenants (M&S, Costa, Subway) onto long leases. New leases with major tenants including Pret A Manger, Starbucks and Sainsbury’s (due to take occupation shortly) were entered into during the ownership.
Commenting on the deal Tom Hesp, Director, said:
“The macro environment was pretty dire for the retail investment sector with the impact of COVID-19, interest rate rises, and the wider retail occupational market headwinds. However, the underlying quality of the location, driven by the c.8 million passengers that use the station annually, meant we were able to execute our asset management strategy, sell the asset at a modest positive return and outperform the sector. Whilst there are few fond memories of some of the more stressful moments of this deal, it demonstrates why a forensic focus on the strength of the location fundamentals on acquisition is so important. The property was uniquely positioned surrounding the station entrance. The clear passenger data and the trajectory for passenger growth were vital in supporting our investment decision and our ability to attract retail tenants during our ownership.”
Charterhouse is seeking similar investment opportunities. So, if you have a proposition you would like to discuss please get in touch at mail@charterh.co.uk
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