Wellcome Trust is close to taking its 12-month UK property spending spree to over £200m with the acquisition of a Northern Food Pension Fund portfolio.
Wellcome is buying from NFPF a portfolio worth just over £60m that is 54% retail warehouses plus prime shops, offices and industrials.
The world’s largest charity, Wellcome is known mainly for acquiring buildings in prime locations, but the NFPF portfolio is spread throughout England. Star holdings include retail warehouse parks in Bangor, North Wales, Stamford and Barnsley.
A source close to the deal said that over 85% of the portfolio is let on leases over 15 years.
Last year, Wellcome acquired the Time Life building in London,W1, for £57.75m at a 4.5% initial yield plus a residential estate in Knightsbridge thought to be worth in excess of £90m.
Northern Foods, meanwhile, is disposing of its property following the demerger of Express Dairies from the core company. The result is that the pension fund is splitting up.
Healey & Baker is acting for Wellcome while Mason Coles advises Northern Foods.
