Invista Real Estate Investment Management has forward funded a 33,000 sq ft retail warehouse in Guildford, Surrey.
The fund manager has pre-bought the development from Travis Perkins Properties for £18m – a 5.65% yield.
The property will be let to building supplies retailer Travis Perkins for 25 years. It will be occupied by Travis Perkins subsidiary Wickes Building Supplies and is scheduled for completion in December next year.
Rob O’Hara, head of group funds at Invista, said: “This is an exceptional forward-funding opportunity and we are very pleased to be working closely with a specialist partner such as Travis Perkins on its delivery.
“We believe it is a great investment, offering our client a guaranteed income stream and long-term value.
“Guildford is one of the strongest retail warehouse markets in the country and Wickes, one the leading DIY operators, offers a solid covenant.”
Martin Meech, chief executive of Travis Perkins Properties, added: “With more than 400 freehold trading sites amounting to more than 450 acres, TPP has a richness of property opportunities rivalled by few UK companies.
“The forward funding of the new store for Wickes releases cash for TPP to invest in our retained site and creates new trading units for TP Group companies: TP Builders merchants, City Plumbing, Tile Giant and Benchmarx.
“We look forward to developing a long and lasting relationship with Invista to bring forward this scheme and many more in the years to come.”
CB Richard Ellis advised Invista; King Sturge acted for Travis Perkins.
