CBRE Global Investors has successfully completed the sale of Reading Retail Park, Oxford Road, Reading for approximately €37m (£31m) reflecting a net initial yield of 6.8% per annum. The property was part of the CBRE UK Property PAIF portfolio.
Located on the western edge of the town, the property comprises of eight retail warehouse units, which total 118,255 ft² as well as 430 car parking spaces. It is currently fully let to national retailers including Wickes, Halfords and KFC with a WAULT of circa 10 years.
Hannah Marshall, Fund Manager of the CBRE UKPP said: “It is key that we continue to recycle assets to ensure our portfolio is of the highest quality. In line with our strategy, we continue to invest capital in quality asset and creating value for our investors. As an asset based in a non-core location, it allows us to focus more on acquiring core properties which aligns with our portfolio strategy.”
The disposal reduces the portfolio’s large weighting towards retail warehousing and allows for selective purchases particularly in the industrial and alternatives sectors.
The UK Property PAIF was launched in December 2016 following the merger of two of CBRE Global Investors’ funds – UK Property Fund and the ESPS UK property portfolio. The merger created the €1.8bn (£1.5bn) fund and positioned the fund in the top ten of the UK pooled property funds. As of December 2016, it was the seventh largest asset within the portfolio, making up 2.2% of the capital value and 3.0% of the portfolio income.
CBRE Global Investors was advised by Cushman and Wakefield.
