Gatehouse Bank completes £33.4 million retail acquisition

Gatehouse Bank completes £33.4 million retail acquisition

Purchase of one of Leeds most prominent retail assets yields 6.35%

Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank based in the City of London, has completed the £33.4 million acquisition of the Debenhams department store in Leeds city centre from receiver KPMG, representing a net initial yield of 6.35%.

Arranged over six levels, the 107,181 sq ft store is one of the most prominent retail assets in the city centre, occupying a 100% prime location on one of the main shopping thoroughfares. Debenhams has demonstrated a long term commitment to the property, having occupied the building in its entirety for more than 15 years. Historically the store has ranked in the company’s top 20 trading stores in the UK and will provide a further 21 years term certain income.

Leeds is recognised as one of the UK’s key shopping destinations, with a catchment population in excess of 3.2 million people and total goods spend of £1,487 million per annum. With a growth level that is significantly above average for other major retail centres, the shopping population is projected to increase by 11% by 2018. This represents a major opportunity for investors looking to capitalise on the strength of the regional market.

Commenting on the acquisition, Scott Nicol, Vice President of Real Estate at Gatehouse Bank, commented:

“The property is in a particularly desirable area of the city centre, where both retail and real estate fundamentals are extremely strong. Major shopping centres such as Leeds are continuing to see high levels of demand, even in the face of a wider economic slow-down, and the prime retail market has remained remarkably resilient. These factors are all key for investors searching for high quality assets, and the Debenhams acquisition typifies our strategy of purchasing long income properties with well-established tenants and which deliver an attractive yield.”

Adam Cavanagh, Head of Real Estate at Gatehouse Bank, added:

“We are delighted with this addition to the portfolio. This is our first acquisition in the retail sector and again demonstrates our ability in sourcing and securing high quality real estate to our investors providing both income and wealth preservation characteristics.”

With a global real estate portfolio worth in excess of £575 million, Gatehouse Bank is one of the most active non-institutional investors in the market and specialises in originating, structuring and funding investments in a Shariah compliant manner. To meet continuing investor demand for high quality property investments, Gatehouse provides leading advice and opportunities to investors across a diverse range of properties ranging from retail and offices, to student and logistics sectors.

CBRE advised KPMG and Franc Warwick advised Gatehouse.