THE owner of a Yorkshire retail park saw its net profit soar by over 370 per cent in the first half of the year after the value of its property portfolio increased.
UK Commercial Property Investment Trust, whose best performing asset is Junction 27 retail park in Birstall, said net profit in the first six months of the year leapt to £85.4m, from £17.9m the previous year.
The trust’s portfolio was valued at £1.1bn at the end of June, up by six per cent.
Asset management activity at Junction 27, its largest property, boosted the performance of the trust’s retail division. It bought the site, which borders Ikea and Marks & Spencer, for £54m in 2010.
Last month, home furnishing retailers Multiyork and Betta Living signed 15-year leases for two new units, totalling 9,967 sq ft, at the site. The spaces were created through the subdivision of the former Comet store following its administration in 2013.
The combined deals are expected to increase the retail park’s income by £449,730 per annum.
Robert Boag, senior investment director at manager Ignis Investment Services, said: “We are seeing generally in the market a lot of investors are wanting to invest in the retail warehouse sector at large retail parks.
“Junction 27 is fully-let and part of a bigger retail area, which are qualities that the market is looking for.”