Investment and asset management firm Almcor is looking to sell a portfolio of four prime retail parks in York, Scunthorpe, Cardiff and Blackburn for £100m.
Savills and Stockford Anderson are marketing the portfolio at a net initial yield of 7.75% and a capital value of £158 per sq ft.
The four retail parks are the 122,988 sq ft Phase II, Clifton Moor Retail Park in York; the 103,839 sq ft Gallagher Retail Park in Scunthorpe; the 190,998 sq ft Cardiff Bay Retail Park in Cardiff; and the 146,454 sq ft Nova Scotia Retail Park in Blackburn.
The portfolio has 97% occupancy, with tenants including B&Q, Aldi, Dunelm, B&M, Pets at Home and TK Maxx. It has an average rent of £13.31 per sq ft and a WAULT of around seven years to lease expiry.
In August, Almcor applied to convert a unit at Cardiff Bay Retail Park into a padel centre. The 35,000 sq ft space, previously occupied by Argos until July 2023, will be run by Padium, marking its first location in Wales.
Retail warehouses are projected to be the top-performing sector in the UK market from 2024 to 2028, with an anticipated compound annual return of 9.3%, according to the Investment Property Forum.
Peter Cooper-Parry, head of the portfolio investment team at Savills, said: “This is a rare opportunity to gain a significant representation in the retail warehouse sector through a single portfolio transaction, acquiring four large and well-let retail parks in core locations.
“Various successful asset management initiatives have been implemented over recent years, with a focus on retaining existing tenants and letting vacant units. A buyer now has the opportunity of taking these schemes through the next cycle and driving rents from their current low base.”
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