AIB Investment Managers have sold Northgate Quarter, Oxford to DTZ Investment Management.

AIB Investment Managers acting on behalf of a group of private clients have sold Northgate Quarter, Oxford to DTZ Investment Management for £31.6m reflecting a net initial yield of 5.18%.Strutt & Parker, who originally acted on behalf of AIBIM on the acquisition of the property, also acted on the sale of the investment.

The prominently located retail property is situated on Magdalen Street in Oxford's central shopping district. It is well let to Tesco, Sainsbury's, Schuh, JJB Sports and a public house with 80%of the income secured against Dun and Bradstreet 5A1 covenants with a passing rent of £1.73m per annum.

The property extends to 51,591 sq ft and comprises modern,purpose built retail units behind an ornate listed façade. The Freehold includes Debenhams, the town's main department store,which sits above and is sold off on a long lease.

Harry Wills, partner in Strutt & Parker's retail investment agency team said: "The deal represents one of the largest high street sales so far this year; and whilst investors have been focusing on out of town and shopping centres it demonstrates that the right high street product is still highly sought after. A very competitive bidding situation emerged,with a number of funds and private investors keen to secure the property due to its quality tenant line-up, units that fit modern requirements and Oxford's continued prominence as a key retail destination."

With the benefit of gearing this investment has shown an excellent return to AIB's clients who will have earned more than 100% profit on their original equity investment. This very strong performance reflects the benefits of investing in core property markets and active asset management.

AIB Investment Managers were represented by Macfarlanes Solicitors.