Warehouse REIT has acquired Phase 2 of Ventura Retail Park in Tamworth, UK, for £38.6 mln (€45.7 mln), reflecting a net initial yield of 7.4%.
The 13-unit scheme, located near Birmingham, Ventura is among the UK's top 20 shopping parks by size.
Phase 2 itself encompasses 11,148 m2 of fully let space, occupied by leading retailers like Boots, Sports Direct, and H&M. The property generates a contracted rent of £3.1 mln (€3.7 mln) annually, with tenants signed on for an average of 6.4 years.
This acquisition aligns with Warehouse REIT's strategy of focusing on multi-let properties. Notably, Ventura is part of a larger retail warehouse complex exceeding 65,032 m2 of prime space. The entire cluster features renowned brands like Next, Primark, and M&S, ranking as one of the UK's top three centres for comparison goods spending.
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.’
Strategically situated near the A5 motorway, Ventura offers convenient access to Birmingham, within a 30-minute drive.
Warehouse REIT has recently completed £165 mln (€195 mln) of sales since its disposal plan was announced in November 2022, reducing net debt to around £235 mln (€278 mln) before this transaction.
