Valad buys £23.7 trio

Valad Europe has acquired a portfolio of three UK properties for a total of £23.7m, on behalf of its Valad European Diversified Fund.

The company has bought Festival Leisure Park in Blackpool from Scottish Widows Investment Partnership for £12.5m, reflecting a yield of 8.94%.

The park comprises more than 95,000 sq ft of leisure space across five buildings, with a weighted average unexpired lease term of 9.5 years. It is currently let to five occupiers including Odeon Cinema, Bannatyne’s Health Club, Frankie and Benny’s, McDonald’s and Spirit Pub.

Valad has also bought Sir Walter Raleigh House in St Helier, Jersey, from Palmer Capital for £6.45m, reflecting a yield of 7.33%.

The 21,000 sq ft office building is multi-let to several financial services companies including Aberdeen Private Wealth Management, CVC Capital Partners, Jersey Finance and Capco Trust Jersey.

Finally, Valad has acquired Mitre Retail Park in Wolverhampton for £4.75m, a yield of 7.56%. Located 1.5 miles from Wolverhampton city centre, the 46,500 sq ft retail park comprises two retail warehouse buildings let to Go Outdoors, Carpetright and Harveys.

Simon Marriott, Valad Europe’s head of UK real estate, said: “All of these investments are in strong regional locations and provide considerable asset management and re-positioning opportunities.

“We are already looking at introducing new food and beverage outlets at Festival Leisure Park and are exploring reversionary rent potential and lease re-gearing opportunities at the other two assets.”

Strutt & Parker acted for Valad Europe on Festival Leisure Park and Clay Street Property Consultants advised Valad Europe on Mitre Retail Park.

Author: Rhiannon Bury, Property Week