LONDON: Warehouse REIT, the multi-let warehouse investor, has acquired Phase 2 of Ventura Retail Park, a 13-unit scheme in Tamworth, close to Birmingham, for £38.6 million, representing a net initial yield of 7.4%.

Built in two phases, Ventura is one of the top 20 shopping parks in the UK by sq ft.  Phase 2 covers 120,000 sq ft and is fully let to a high quality occupier line up including Boots, Sports Direct and H&M. Contracted rent across the scheme is £3.1 million and the WAULT is 6.4 years.

Ventura is part of a larger retail warehouse cluster covering over 700,000 sq ft of prime space, with occupiers including Next, Primark and M&S and ranks in the top three centres for comparison goods spend in the UK.  It is adjacent to the A5 and 30 minutes’ drive time from Birmingham in the West Midlands, which is one of our highest conviction regions. 

This acquisition is consistent with Warehouse REIT’s focus on multi-let assets.  In addition, Warehouse REIT and its management team have a strong track record of investing in, and managing retail warehouses, which coupled with its experience in multi-let industrial warehousing, make this a highly complementary addition to the portfolio.

Warehouse REIT recently announced that it had completed £165 million of sales since its disposal plan was announced in November 2022, reducing net debt to c.£235 million prior to this transaction, strengthening its balance sheet and providing a platform from which to undertake selective, accretive acquisitions. It will remain disciplined in its approach to ensure that leverage and finance costs remain low and manageable.

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.”

Warehouse REIT buys Cambridge South Industrial Estate on Dales Manor Business Park