Purchase of Festival Park Outlet Centre, Ebbw Vale

We are delighted to announce the aquisition of Festival Park Outlet centre in Ebbw Vale, South Wales for £19.5 million as the first asset for the newly formed Chester Properties Third Investment Partnership. The purchase price reflects a net initial yield of 7.4%. The 100,000 sq ft scheme is one of only two oulet centres in Wales and comprises 41 shop units and a garden centre together with 1,000 car spaces. It sits on a 75 acre parkland site, which was formerly part of the Ebbw Vale Garden Festival site. Tenants include Designer Room, Sportsworld, Cotton Traders, Select, Edinburgh Woollen Mill and Thorntons. The property has numerous opportunities for improvement and asset management. A planning application has been submitted for a 25,000 sq ft extension and we will be working hard to improve the tenant mix. We will also be appointing a marketing director to develop new marketing initiatives to tap into the strong surrounding catchment and exploit the potential spend from the 4 million tourist visitors to the Brecon Beacons, immediately north of Ebbw Vale.