FPG snaps up North East retail
In its first acquisition of 2024, the UK arm of South African property group FPG has acquired phase two of Washington Retail Park from Peel’s retail and leisure division.
Watling Real Estate advised FPG (UK) on the purchase of the retail scheme on the Sunderland Highway.
The wider Washington Retail Park comprises 122,322 sq ft of retail space with 678 parking spaces.
Around 40,000 sq ft has been sold, anchored by Lidl and also featuring Greggs, pound-store trader One Beyond and Iceland brand Food Warehouse.
Ian Whittaker, a director in the Manchester office of Watling Real Estate, said: “Located prominently on Spire Road just off the Sunderland Highway, the park boasts an impressive tenant line up, being anchored by a Lidl food store which accounts for over 50% of the income.
“Greggs, Food Warehouse and One Beyond make up the remaining tenant line up which has a very healthy 14-year WAULT. The current income is circa £600,000, with additional income available from electric vehicle chargers.”
Clay’s Garden Centre and JD Gyms are among the occupiers in the part of the park not included in the sale.
Altaf Bharde, director at FPG, said: “We are thrilled to kick off the new financial year with a bang. The Park is a fantastic addition to our portfolio and our pipeline for the coming months is looking strong.
“This acquisition perfectly aligns with our focus on out-of-town retail parks anchored by strong food retailers. A huge thank you to all our advisors for helping to make this deal happen.”
Whittaker added: “We are delighted to have advised on this acquisition and it adds to the growing number of transactions that we have had the pleasure to work on together.
“FPG are a fantastically reliable buyer and when they agree to something you have the confidence that it will be a smooth and timely transaction. FPG remains on the hunt for new stock for the remainder of the year, so we would be pleased to receive further approaches on suitable sites.”
Savills advised Peel on the sale, with Walker Morris providing legal advice. Law firm Harold Benjamin acted for FPG, while Skyscape Property Management provided management support.
