News

Warehouse REIT buys slice of Tamworth retail park

News

Pui-Guan Man

25 June 2024

Retail

Staffordshire, West Midlands

Warehouse REIT has bought the second phase of Ventura Retail Park in Tamworth, Staffordshire, for £38.6m, representing a net initial yield of 7.4%.

Phase two measures 120,000 sq ft and comprises 13 stores. It is fully let with occupiers including Boots, Sports Direct and H&M. Contracted rent across the scheme is £3.1m and the WAULT is 6.4 years.

Built in two phases, Ventura is thought to be one of the top 20 shopping parks in the UK by size. Ventura is part of a larger retail warehouse cluster covering more than 700,000 sq ft of prime space, with occupiers including Next, Primark and Marks & Spencer.

Simon Hope of Warehouse REIT said: “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.”

The news comes after the REIT returned to profit in the year to 31 March, generating IFRS pretax profit of £34.3m, compared with a £182.8m loss last year.

Warehouse REIT cited “robust” occupier demand, with contracted rents growing by 5.1% on a like-for-like basis.

The value of its portfolio fell to £810.2m, from £828.8m. However, EPRA net tangible assets per share rose to 124.4p, from 122.6p.

During the year, it sold £165.2m of non-core assets, reducing net debt to around £235m.

Neil Kirton, chairman of Warehouse REIT, said: “The standout feature of this year has been the resilience of the industrial occupational markets, reinforcing our conviction in the multi-let asset class and driving a 5.1% increase in like-for-like rental growth. This part of the market remains structurally under-supplied in terms of well-located, quality assets, supporting an increase in our valuation and enabling us to capture an uplift on previous rents of nearly 30%.”

Send feedback to Pui-Guan Man

Follow Estates Gazette

Warehouse REIT

Warehouse REIT has bought the second phase of Ventura Retail Park in Tamworth, Staffordshire, for £38.6m, representing a net initial yield of 7.4%. Phase two measures 120,000 sq ft and comprises 13 stores. It is fully let with occupiers including Boots, Sports Direct and H&M. Contracted rent across the scheme is £3.1m and the WAULT is 6.4 years. Built in two phases, Ventura is thought to be one of the top 20 shopping parks in the UK by size. Ventura is part of a larger retail warehouse cluster covering more than 700,000 sq ft of prime space, with occupiers including Next, Primark and Marks & Spencer. Simon Hope of Warehouse REIT said: “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.” The news comes after the REIT returned to profit in the year to 31 March, generating IFRS pretax profit of £34.3m, compared with a £182.8m loss last year. Warehouse REIT cited “robust” occupier demand, with contracted rents growing by 5.1% on a like-for-like basis. The value of its portfolio fell to £810.2m, from £828.8m. However, EPRA net tangible assets per share rose to 124.4p, from 122.6p. During the year, it sold £165.2m of non-core assets, reducing net debt to around £235m. Neil Kirton, chairman of Warehouse REIT, said: “The standout feature of this year has been the resilience of the industrial occupational markets, reinforcing our conviction in the multi-let asset class and driving a 5.1% increase in like-for-like rental growth. This part of the market remains structurally under-supplied in terms of well-located, quality assets, supporting an increase in our valuation and enabling us to capture an uplift on previous rents of nearly 30%.”