Meridian Leisure Park in Leicester has been acquired by Greenridge Opportunities LP from Legal & General Investment Management (LGIM) for £25 million. The transaction, reflecting a yield of 8.50%, was facilitated in an off-market deal with Montagu Evans advising LGIM and Savills representing Greenridge.

Located in a strategic position southwest of Leicester City Centre and easily accessible from the Leicester Ring Road and M1, the leisure park spans 155,071 sq ft across a 19.8-acre site. It boasts a diverse range of entertainment and dining options, including Vue Cinemas and Hollywood Bowl as anchor tenants, alongside popular names like David Lloyd, Nando’s, Five Guys, Burger King, Pizza Hut, and Frankie & Benny’s.

LGIM has maintained ownership of the park since 2002, witnessing various new leases and regears. The park currently enjoys a 99% occupancy rate, with over half of its income secured through rental indexation or fixed uplifts, and an average lease term of about 12 years.

Bik Bhuptani, partner at Greenridge, expressed enthusiasm for the acquisition, highlighting the park’s strong tenant mix and prime location as key factors in their investment strategy. Bhuptani underscored the opportunity to further enhance the park’s appeal and reinforce its role as a premier leisure destination in the East Midlands.

Andrew Ferguson, senior fund manager at LGIM, commented on the resilience of well-managed leisure schemes in prime locations, despite recent challenges in the leisure sector, especially cinemas. He anticipates a positive rebound in the cinema market, driven by an encouraging film pipeline over the next few years.

Edward George, partner at Montagu Evans, remarked on the transaction’s significance in the leisure sector, viewing it as a benchmark for liquidity and a precursor to similar deals expected in the near future. He noted LGIM’s strategy of capital reallocation towards new opportunities and enhancements in their portfolio, including commitments to Environmental, Social, and Governance (ESG) objectives.