Friday, 20 March 2015
Valad boosts UK portfolio with €32.8 mln of acquisitions for its Valad European Diversified Fund (UK)
Valad Europe, the leading independent diversified real estate investment manager, has acquired three UK properties for a total of £23.7 mln (€32.7 mln) on behalf of the Valad European Diversified Fund (VEDF).
Festival Leisure Park in Blackpool was acquired from Scottish Widows Investment Partnership for £12.5 mln (€17.5 mln), reflecting a net initial yield of 8.94%. Comprising 8,875 m² of leisure space across five buildings, the purpose-built Leisure Park has a weighted average unexpired lease term of 9.5 years and is currently let to five occupiers including Odeon Cinema, Bannatyne’s Health Club, Frankie and Benny’s, McDonald’s and Spirit Pub.
Sir Walter Raleigh House, St Helier, Jersey, was acquired from Palmer Capital for £6.45 mln (€8.9 mln), reflecting a net initial yield of 7.33%. With a weighted average unexpired lease term of 5.56 years, the four storey, 1,939 m² multi-let office building is located in the prime commercial area of St Helier and is currently let to several financial services companies including Aberdeen Private Wealth Management, CVC Capital Partners, Jersey Finance and Capco Trust Jersey.
Mitre Retail Park in Wolverhampton was acquired for £4.75 mln (€6.5 mln), reflecting a net initial yield of 7.56%. Located 1.5 miles from Wolverhampton City Centre, the 4,329 m² Retail Park comprises two retail warehouse buildings.
Simon Marriott, Valad Europe’s Head of UK Real Estate, commented: “We have now purchased 16 assets in the UK for VEDF. All of these investments are in strong regional locations and provide considerable asset management and re-positioning opportunities. We are already looking at introducing new food and beverage outlets at Festival Leisure Park and are exploring reversionary rent potential and lease re-gearing opportunities at the other two assets.”
Strutt & Parker acted for Valad Europe on Festival Leisure Park and Clay Street Property Consultants advised Valad Europe on Mitre Retail Park.