Palmer Capital bags £18m hat-trick

Palmer Capital has completed the acquisition of a trio of industrial assets from Columbia Threadneedle Investments for close to the £18m mark, CoStar News can reveal.

The deal – which represents a blended initial yield of 6.5% – includes two warehouse buildings let to Booker Group, which is the UK’s biggest food wholesaler, and another to The Range, one of the UK’s leading home, garden, and leisure retail chains.

The units are located in Exeter; Southend; and Warrington, according to market sources.

The deal marks another stage in the deleveraging of Booker Group let assets by Columbia Threadneedle. The UK’s biggest supermarket group, Tesco, has agreed to buy the UK’s biggest food wholesaler, Booker Group, in a £3.7bn deal.

Booker Group is the UK’s largest cash and carry operator, and supplies everything from baked beans to teabags to 700,000 convenience stores, grocers, pubs and restaurants.

OLIM Property, the institutional property investment manager, acquired four freehold and one long leasehold Booker Group-let wholesale cash and carry warehouses for £29.536m at an average net initial yield of 6.4% for its discretionary pension fund and charity portfolios. The warehouses are understood to have been bought from Columbia Threadneedle.

The locations are Cardiff, Colchester, Gloucester, Hereford and Swansea.

In Nottingham, Highcroft Investments plc, via its property owning subsidiary Rodenhurst Estates, acquired the freehold interest in a Booker facility at 1 The Midway from Columbia Threadneedle for £5.28m, representing a net initial yield of 6.09%.

All parties declined to comment.

Author: Chris Borland, CoStar

Link: http://www.costar.co.uk/en/assets/news/2017/April/Palmer-Capital-bags-18m-hat-trick/