Property investor snaps up Birmingham retail park in £5m deal

A Birmingham retail park has been acquired by a major commercial property investor in a deal worth more than £5m.

Custodian Real Estate Investment Trust has acquired the 23,007 sq ft Wells Green Retail Park in Sheldon, five miles from Birmingham city centre.

The Coventry Road site comprises three units occupied by Dreams, Pets at Home and Halfords, with nearby retailers including Morrisons, Tesco, Topps Tiles and Aldi.

The leases on the units expire on September 28, 2022, September 26, 2026 and September 28, 2027 respectively, with a total passing rent of £361,037 per annum reflecting a net initial yield of 6.64%.

The agreed purchase price of £5.1m was funded from the company’s existing cash resources, resulting in net gearing increasing to 19.6% loan to value.

Commenting on the acquisition, Richard Shepherd-Cross, managing director of Custodian Capital – the company’s discretionary investment manager – said: “We are delighted to have secured this prominently located property within Sheldon’s retail pitch and on one of the main arterial routes into Birmingham city centre.

“Halfords has recently signed a reversionary lease, demonstrating their dedication to the location.  With strong occupier interest being experienced at the proposed Sheldon Retail Park development, the area is showing signs of strong future growth potential.”