The property company ups its presence in the city as development decision looms
Modus Properties has bought two key sites in the centre of Newport, South Wales, where it is already shortlisted for a major city centre development.

Through its joint venture with South African investor Corovest, Modus has paid£9.3 million for 39,020 sq ft (3,625 sq m) of retail space at 19-29 John Frost Square and 1-9 Upper Dock Street.

The properties form part of the prime pedestrianised retail area in Newport. Tenants include New Look, Officers Club, Iceland and Co-op Bank, and the purchase reflects a 5.4 per cent initial yield.

Modus is on a shortlist of five developers that have until the end of January to tender for the proposed redevelopment of the city's retail core. The council expects the development agreement to be signed by May 1.

Modus managing director Brendan Flood said: 'This purchase is consistent with the Modus philosophy of investing in centres with regeneration potential. Newport is a terrific opportunity for us to build on our shopping centre success.'

Tushingham Moore represented Modus. Lunson Mitchenall acted for the vendor.