Palmer Capital has acquired a Sainsbury’s-anchored retail park in Wakefield for £37.5m from Aberdeen Standard, reflecting a yield of 6.3%.

The 66,000 sq ft Sainsbury’s store at Beck Retail Park is let on an unexpired lease term of 19 years and accounts for just under 50% of the income. Other tenants include B&M Bargains, Home Bargains, Matalan and The Range.

It is the first major retail park deal for Palmer Capital since Canadian asset management firm Fiera Capital Corporation has acquired an 80% controlling interest in the investment manager.

Palmer Capital acquisitions director Charles Allen said the retail park, which was acquired for a Middle Eastern investor, was a “perfect match” for the client’s income requirement.

“The long unexpired Sainsbury’s lease duration, combined with a strong complementary retail mix, trading off recently rebased rental levels, creates the ideal backdrop for generating sustainable and progressive income returns,” he said, adding that the firm was on the lookout for similar deals.

Palmer Capital was advised by Montagu Evans and Savills represented Aberdeen Standard.

Originally published in Property Week in January 2019, written by Guy Montague-Jones.