PART of a large retail park in Worcester has been sold for £13m.

The section of Shrub Hill Retail Park to the east of the Worcester to Birmingham canal has been sold by developers St Modwen Properties plc.

St Modwen developed the city centre site - which had been run-down and disused for many years - in 2002. The massive project involved building a new road, moving a car park, knocking down a pub and building two new bridges over the canal.

St Modwen has sold the eastern section of the park to Cheval Properties Ltd for £13.158m, which represents an initial yield - based on the total annual rent roll of £881,805 - of 6.5 per cent, according to St Modwen.

The eastern section of Shrub Hill Retail Park comprises five retail units totalling 56,972sq ft. They are occupied by Klaussner (furniture), Dreams (beds), Wickes DIY, Tiles R Us and Wilsons Pets, which all opened between the end of 2002 and early in 2003.

A purpose-built Pizza Hut restaurant, with 4,063sq ft of floor space stands next to the canal, and was the last piece of the jigsaw, having opened at the end of 2003.

Alan Williams of St Modwen, said the sale typified St Modwen's role as a major developer of brownfield regeneration sites.

"In conjunction with the City of Worcester, St Modwen completed a complicated land assembly and constructed major new highway infrastructure and environmental improvements including two new canal bridges and tow path enhancements," he said.

"The scheme therefore, in addition to building up Worcester's strong retail offer, provided a major new road link into Worcester city centre and regenerated the long neglected Tallow Hill area."

The relocation of a public car park and a children's play area also needed to be addressed, as well as the demolition of the Beehive public house, with important architectural artefacts saved and incorporated into the new Pizza Hut restaurant. The new footbridge over the canal was swung into place using a massive crane, in November 2002.

St Modwen has retained its interest in the section of Shrub Hill Retail Park on the western side of the canal, occupied by Staples (office equipment), Carphone Warehouse and Blockbuster Video. It is now investigating additional development on land adjoining this area.