Valad picks up retail warehouse for £7m

PROPERTY investor Valad Europe has paid £7m for a 68,351 sq ft retail warehouse and restaurant in St Helens.

The site, in Chalon Way West, has been sold by Tesco subsidiary Spen Hill Developments. The deal represents a net initial yield of 7.65%.

The warehouse is let to garden retailer The Range on a 15-year lease, and McDonalds has a 20-year lease on the restaurant unit.

Rob Howe, Valad’s head of UK real estate, said: “With long-term, secure income and reversionary rent potential, Chalon Way West is a strong, high quality UK asset for the Fund. This is our sixth UK acquisition since launching VEDF last year and is in line with our strategy to target retail warehouse and office assets.”

Cheetham & Mortimer acted for Valad Europe while Mark Liell acted for Spen Hill.