New Star UK Property makes first acquisition in two years

New Star's £741m UK Property fund has made its first purchase in over two years, a £10.5m retail unit in Chichester.

Let to the House of Fraser department store until 2039, the acquisition takes the number of properties in the portfolio to 52. The fund, which has a current initial yield of 7.6%, has a 20% cash position and co-managers Marcus Langlands Pearse and Ainslie McLennan are looking to acquire two further properties in the near term. "The UK property market is now in full recovery mode with yields on prime properties hardening rapidly," Langlands Pearse says. "This property, in the centre of Chichester, one of the South East's most affluent towns, further boosts the average lease length a...