Palmer Capital is delighted to announce the acquisition of a retail warehouse let to B&Q PLC for £40.4m, reflecting a net initial yield of 6.6% and capital value of £349 per sq. ft.
The property is located in one of the premier out-of-town retail locations in Hedge End, 5 miles from Southampton city centre. The property comprises 115,913 sq. ft. of retail warehouse accommodation together with a garden centre, builder’s yard, trade park counter and self-contained car park.
The property is wholly occupied by B&Q PLC on a 20 year FRI lease, with c.10.1 years unexpired.
The property has been acquired on behalf of a client of Palmer Capital, as part of an ongoing investment programme to buy UK real estate assets.
Charles Allen, Acquisitions Director at Palmer Capital commented: “This asset is a perfect match for our client’s income requirement and demonstrates their on-going commitment to the UK. This asset perfectly reflects our investment strategy of investing in high quality buildings, on long leases, let to strong covenants to deliver our investors attractive, low risk income returns. We are actively seeking other similar transactions in 2018”.
Palmer Capital were advised by Colliers.