Retail Property - John Lyons to change tactics for investment

Leasehold reform has forced a 16th century north London charity to start investing in retail parks.

John Lyons Charity has acquired the freehold of Wincheap Retail Park from Henderson Global Investors for£11.1 million, reflecting a yield of 5.3 per cent. The 35,594 sq ft (3,305 sq m) retail park is let to Mothercare, Halfords and Time Computers at rents ranging from£17.50 per sq ft (£188 per sq m) to£18.22 per sq ft (£196 per sq m).

The charity, which dates back to 1578, has seen its traditional residential freehold investments in St John's Wood decline following the introduction of the 1993 Leasehold Reform Act, which enabled leaseholders to force landlords to sell. It has now decided to reinvest in the commercial property sector.