Edmond de Rothschild Real Estate Investment Management has acquired two retail warehouse assets in England for £15m.
The firm has purchased a 33,600 sq ft asset in South Ruislip from Aviva Investors for £10.75m, in a deal reflecting an initial yield of approximately 7.3%. The asset is let to Wickes with 19.2 years left to run on the lease.
The second retail warehouse asset, which is located in Swindon, was purchased for £4.24m from Somerset Council, in a deal reflecting an initial yield of approximately 8%. The 20,000 sq ft asset is situated on the Wootton Bassett Road and is let to DFS and Sofology. Both leases have 13.5 years remaining.
Klaus Georg Schmitz, CIO at Edmond de Rothschild REIM, said: “These transactions demonstrate the remarkable ability of our local teams to identify high-performing assets that provide our investors with predictable, long-term returns via long-term leases and strong covenants. The deals also mark our expansion into the retail warehouse sector, integrating a new asset class into what is now a truly diversified portfolio This success is undoubtably built on our rigorous underwriting process and proven record of performance.”
Gavin Munn, head of acquisitions at Edmond de Rothschild REIM, added: “We are delighted to have acquired our first two retail warehouse assets in the UK, bringing our total number of acquisitions in the last eight months to six. Our recent deal flow sees us continue to create a diverse geographical and sectoral spread of long, well secured income.”
Edmond de Rothschild REIM was advised by DLA, PMP and JM&Co.
