Solutus helps secure sale of six former Toys ‘R’ Us properties for £30.5m
Six former Toys ‘R’ Us properties have been sold in a series of deals worth £30.5M.
Solutus managed the newly named Duke Portfolio in to special servicing following Toys ‘R’ Us (UK) Ltd entering administration in February. The portfolio is currently owned by Toys ‘R’ Us Properties (UK) Ltd with a secured debt of £263M.
The distressed portfolio has obvious appeal to retail operators and for developers given the prime locations of the stores. Cardiff, Liverpool, Shrewsbury, Woking, York and Plymouth are where the 6 properties are located, amounting a total retail space of 222,319 sq ft.
Vacancy rates in UK retail warehouses are relatively low which led to competitive bidding for the properties before the sale.
The sales were completed in conjunction with FI Real Estate Management, appointed for their asset management services of the 31 former Toys ‘R’ Us assets. Agents Cushman & Wakefield and Morgan Williams have been appointed to manage the sale process together.
Buyers of the former Toys ‘R’ Us properties that have been sold so far include:
- A retailer, which has purchased three prime properties in Liverpool, Shrewsbury and York totalling 91,188 sq. ft
- A property developer, which has purchased a 41,360 sq. ft property
- Cardiff Council, which has purchased a 40,000 sq. ft unit
A spokesperson for Solutus, said: “Although there is much talk of weakness in the retail market these transactions show that there is still a lot of interest in well-located larger sites that provide opportunities for retailers to expand or for alternate use.”
A spokesperson at FI Real Estate Management, said: “We recognised the appeal of a selection of properties within the Duke portfolio to successful out of town retail operators and as prime development opportunities for local authorities. The six properties sold to date reflect the healthy appetite for prime sites and demonstrates our ability to unlock asset value by ensuring we utilise an intelligent and appropriate commercial approach. We are also in the final stages of securing a further four sales and are in negotiations to split a number of the units to let to strong retail brands.”