Warehouse REIT has acquired Phase 2 of Ventura Retail Park, a 13-unit scheme in Tamworth, close to Birmingham, for c. €45.2m, representing a net initial yield of 7.4%. Phase 2 covers c. 11,148m2 and is fully let to Boots, Sports Direct, and H&M. The contracted rent across the scheme is c. €3.6m and the weighted average unexpired lease term (WAULT) is 6.4 years.
Ventura is part of a larger retail warehouse cluster covering over 65,032m2 of prime space, with occupants including Next, Primark, and M&S. It is adjacent to the A5 and is a 30-minute drive from Birmingham in the West Midlands, which is one of the highest conviction regions.
Simon Hope, Warehouse REIT, commented: “This was a rare opportunity to acquire an asset that will be earnings enhancing in year one. Retail warehousing is a sector where we have deep experience, and which plays to our strengths in multi-let asset management. Rents have rebased and are now starting to grow, while pricing remains attractive relative to equivalent assets on the multi-let industrial side, which should support earnings and help rebuild dividend cover – a key priority for this business.”
Image provided by FTI Consulting.
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