July 3, 2019
Palmer Capital has acquired a c. 306,000 sq ft retail store portfolio from B&Q, by way of sale-and-leaseback. The portfolio comprises three solus retail stores in Birmingham, Cardiff, and Washington. The assets were acquired on behalf of a separate account mandate.
The properties are all let on new 15-year FRI leases. The units are all approx. 100,000 sq ft in size and were developed between 1998 and 2001. The acquisition reflects a targeted focus towards the more resilient, home improvement end of the retail market.
All the sites are well located, sitting within 20 minutes’ drive of three of the UKs largest cities – Birmingham, Cardiff and Newcastle-upon-Tyne – and benefit from access to a combined to c. 2.5 million catchment shopping population. Furthermore, all the stores are located within close proximity to major motorways, providing for a high degree of connectivity for any future alternative uses.
Charles Allen, Head of Acquisitions at Palmer Capital, commented:
“These assets are a strong match for our clients’ investment requirements and are an example of their continued confidence in the UK economy. The new 15-year leases to a subsidiary of an investment grade credit, will provide sustainable and progressive income returns for our investors. We are actively seeking similar transactions.”
Palmer Capital were advised by CWM and Avison Young.
