The Charities Property Fund in the UK, advised by Cordea Savills, has completed the purchase of a B&Q warehouse in Redditch, Worcestershire for £16.3 mln (EUR 17.7 mln). The vendor was UK real estate investment manager Prupim.
The Charities Property Fund in the UK, advised by Cordea Savills, has completed the purchase of a B&Q warehouse in Redditch, Worcestershire for £16.3 mln (EUR 17.7 mln). The vendor was UK real estate investment manager Prupim.
The Fund, which targets a total return of 8%, invests directly in a diversified portfolio of UK commercial property and currently has £229 mln in assets under management with over 1,000 investors.
The new purchase, which will become the largest asset in the portfolio, was acquired for a net initial yield of 7.5%, although this reflected a yield of 7.9% to the Fund as it is stamp duty exempt. This is in line with its objective of providing secure income whilst offering scope for rental and capital growth.
The property is a purpose-built retail warehouse constructed in 2002 and comprises 9,500 m2 in total. It is entirely let to B&Q plc for a term of 25 years, expiring in July 2027, leaving 18 years unexpired which is significantly longer than the average lease in the fund's portfolio. B&Q is the UK's leading DIY and garden centre retailer with a 14.8% share of the repair, maintenance and improvement market.
BC Commercial and CWM acted for the Fund while PRUPIM represented themselves.
