French investment manager Epsicap REIM has strengthened its UK footprint with the acquisition of a strategically positioned retail park in Leeds for €5m, marking its first English investment as part of an aggressive pan-European expansion strategy.
The 3,030 m² retail park on Armley Road features two units let to discount retailers B&M and Farmfoods, alongside an existing LIDL supermarket. The acquisition, made on behalf of Epsicap's SCPI fund Epsicap Nano, capitalises on the robust performance of discount retail formats, which have proven remarkably resilient during inflationary pressures and continue to gain market share across the UK.
Florian Le Quéré, Partner & Head of Investments at Epsicap REIM, commented: "Following acquisitions in Portugal and Scotland last July, this second investment in the United Kingdom further demonstrates our ability to execute our investment strategy on a pan-European basis. This asset perfectly fits our investment strategy: a strategically located retail park leased to strong covenants with secured long-term cash flows. We should close several other deals in the UK in the coming weeks and months."
The timing of this acquisition is particularly astute, given the current transformation of the retail landscape. While traditional high street retail faces headwinds, convenience-led retail parks in accessible locations are experiencing increased investor appetite due to their defensive characteristics and ability to serve evolving consumer shopping patterns, including click-and-collect services.
The transaction demonstrates foreign capital's growing confidence in UK retail real estate, particularly assets anchored by essential retailers with strong covenant strength. For developers and investors, this signals a potential shift towards opportunistic acquisitions in secondary locations where yields remain attractive compared to prime markets.
Savills acted as buy-side agent through Mark Wilson, whilst Mishcon de Reya LLP provided legal counsel via John Gordon and Kavita Mehta. Technical due diligence was conducted by Jones Hargreaves through Peter Hargreaves and Jack Kettlewell.
People mentioned:
- Florian Le Quéré, Partner & Head of Investments, Epsicap REIM
- Mark Wilson, Savills
- John Gordon, Solicitor, Mishcon de Reya LLP
- Kavita Mehta, Solicitor, Mishcon de Reya LLP
- Peter Hargreaves, Jones Hargreaves
- Jack Kettlewell, Jones Hargreaves
Companies mentioned:
- Epsicap REIM - Investment manager
- B&M - Discount retailer tenant
- Farmfoods - Frozen food retailer tenant
- LIDL - Supermarket chain
- Savills - Buy-side agent
- Mishcon de Reya LLP - Legal advisors
- Jones Hargreaves - Technical due diligence
Get the latest commercial real estate news, investment insights, and property trends from Europe Real Estate, trusted by professionals since 1999.
Sign up for free daily or weekly updates. Join here
