Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has entered into a new £47.75 million five year term loan with pbb Deutsche Pfandbriefbank secured against St Andrew’s Quay Retail Park, Hull.
Orchard Street acquired St Andrew’s Quay on behalf of Orchard Street UK Prime Property Partnershipin September 2014 for £95.55 million from Threadneedle Investments. The purchase pricereflected a net initial yield of 6.1%.
The 327,000 sq ft modern, multi-let retail warehouse scheme is situated two miles to the west of Hull city centre and has a frontage onto the Humber estuary. Currently fully let with a WAULT of 11.1 years, the park is anchored by a B&Q Warehouse on a 16 year unexpired RPI linked lease. Other tenants include Halfords, Curry’s, Sofaworks, DFS, Carpetright, Pets at Home and PC World as well as restaurant chains Frankie & Benny’s and Pizza Hut.
Philip Gadsden, Managing Partner at Orchard Street, said:
“This financing from pbb Deutsche Pfandbriefbank fits precisely with our strategy for the property and for theOrchard Street UK Prime Property Partnership. Pbb’s experience in the sector and flexible approach has enabled us to arrange a debt structure that complements our business plan, rather than dictate it and we are delighted to have secured their backing.”
Charles Balch, Head of International Clients at pbb Deutsche Pfandbriefbank, said: "This facility to Orchard Street continues our strategy in the UK of providing debt to high quality asset managers on competitive terms and working with our customers in pursuit of their property investment strategies."