Valad Europe, the leading diversified real estate investment manager, has completed on an additional three deals comprising six distribution warehouses for a total of £20.4 mln (€24.7 bn).
Valad Europe, the leading diversified real estate investment manager, has completed on an additional three deals comprising six distribution warehouses for a total of £20.4 mln (€24.7 bn).
The acquisitions were made on behalf of the Select Industrial Real Estate Fund (SIRE), a joint venture between Valad Europe and Grindrod Financial Services.
The assets include four self-contained distribution warehouse units at Stonebridge Cross Business Park in Droitwich, just off the M5 motorway, comprising 188,375 sq ft of industrial space, which were acquired for £11.7 mln, or a net initial yield of 7.55%.
SIRE also purchased a 90,374 sq ft distribution warehouse at Leacroft Road in Warrington for £4.9 mln, reflecting a net initial yield of 7.9%, and a 60,364 sq ft distribution warehouse at Unit 9A, Castlewood Business Park, Sutton in Ashfield, Derbyshire for £3.8 mln or a net initial yield of 7.96%. Both assets are let to single tenants on five and 15 year leases respectively.
In 2013, Valad Europe created a joint venture separate account mandate with Grindrod Financial Services to build a portfolio of UK industrial real estate assets with an initial target gross asset value of £100 mln. The joint venture is seeded with equity contributed from a combination of individual private equity investors, South African institutions, Grindrod Financial Services and Valad Europe, which is being used to acquire strategic assets across the UK in lot sizes of between £5 and £25 mln.
With teams in London, Leeds, Edinburgh and Scarborough, Valad Europe’s UK team of 80 people, have £1 bn invested in UK real estate comprising more than £700 mln of retail, office, industrial and student accommodation assets and £250 mln of development projects. This forms part of Valad Europe’s wider platform of €4 bn of assets, managed from 21 local offices in 12 countries.