Opus North Sell £51.7m Hillsborough Morrisons

Opus North, a leading Yorkshire property developer backed by Palmer Capital, has successfully sold a Morrisons supermarket at Hillsborough Barracks in Sheffield to a supermarket Income REIT  for £51.7m reflecting a net initial yield of 4.59%.

The asset has been sold on behalf of Palmer Capital Development Fund III, a programmatic venture between clients of CBRE Global Investment Partners (“CBRE GIP”) and Palmer Capital.

The supermarket is located on an 8.4-acre site at the historic and prominent Hillsborough Barracks. It comprises an 113,000 sq. ft. Morrisons supermarket, approximately 860 parking spaces and a 12-pump petrol filling station.

It is let for a further 21 years with five-yearly, upward-only, RPI-linked rent reviews compounded annually.  The property was acquired as part of a portfolio of two supermarkets and three shopping centres from Morrisons in 2015.

Andrew Duncan, Director at Opus North commented: “This has proved to be an excellent project and has allowed us to strengthen our asset management role, alongside our extensive development pipeline.

We have maximised the potential of the portfolio and believe that the return of confidence to the commercial property market in Yorkshire and the North West, despite the challenges posed by Brexit, has presented a number of excellent opportunities, which we look forward to taking”

Alex Bignell, Region Head of UK, CBRE Global Investment Partners said: “On behalf of our clients, we moved quickly to provide the funding necessary to acquire this investment opportunity in 2015 following its introduction by Opus North and Palmer Capital. The profit on the supermarket sales, and value uplifts achieved to date on the retained shopping centres, have vindicated this decision .”

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