Property News - Commercial Union nets £11m for Cheltenham's Gateway Park

Bank of Ireland Asset Management has paid£11.4 million for the freehold of the Gateway Retail Park on Tewkesbury Road at Cheltenham, Gloucestershire. The deal reflects an initial yield of 4.8 per cent.

The 34,935 sq ft (3,245 sq m) park is let to Currys and PC World on 25-year leases from June 1999 and produces a total rental income of£577,500 a year.

Chapman Petrie advised Bank of Ireland Asset Management, while Edgerley Simpson Howe & Partners acted for Morley, which sold the property on behalf of Commercial Union Life Assurance.

Jo Duffield of ESH&P said: 'With a rent review due in June next year and a passing rent of just over£16.50 per sq ft (£177 per sq m), there was exceptionally strong competition for this investment.'