Inside Cardiff's Morgan Arcade
Helical plc, one of the UK's leading property companies, has sold The Morgan Quarter in Cardiff to LaSalle Investment Management for £55m.
The sale price is in line with Helical's March 2016 book value and reflects a net initial yield of 5.9% and a reversionary yield of 6.9%.
Helical acquired the former David Morgan Department Store and two Victorian arcades in 2005.
Since then it has undertaken a substantial value enhancing refurbishment programme, delivering more than 300,000 sq ft of high-quality, award-winning, retail and office space.
It now counts a number of established retailers and local businesses as tenants including White Stuff, Jack Wills, Urban Outfitters and Molton Brown.
Duncan Walker, investment director at Helical, said: "This significant sale, at an attractive yield, represents the eighth retail asset we have sold since March 2016.
“In line with our continued repositioning of the portfolio through value-enhancing disposals, our retail investments now comprise just a small number of retail warehouses.
“Our intention is to recycle the majority of the proceeds of this disposal into our London portfolio."
Helical was advised by JLL; the purchaser by Savills.