Tamworth retail park snapped up in £38m deal

Warehouse REIT has announced its partial acquisition of a Tamworth shopping park in a £38.6m deal.

Phase 2 of Ventura Retail Park spans 120,000 sq ft with 13 units, and is fully let to occupiers including Boots, Sports Direct and H&M. Contracted rent across the scheme brings in £3.1m per year.

Built in two phases, Ventura is one of the top 20 shopping parks in the UK by sq ft. It is part of a larger retail warehouse cluster covering more than 700,000 sq ft of prime space, with major retailers such as Next, Primark and M&S occupying space.

Warehouse REIT recently announced that it had completed £165m of sales since its disposal plan was announced in November 2022, reducing net debt to around .£235 million prior to this transaction. Its aim has been to strengthen its balance sheet and provide a platform from which to undertake selective, accretive acquisitions.

Simon Hope, non-executive director of Warehouse REIT, commented: “This was a rare opportunity to acquire an asset that will be earnings enhancing in year one. Retail warehousing is a sector where we have deep experience, and which plays to our strengths in multi-let asset management.

“Rents have rebased and are now starting to grow, while pricing remains attractive relative to equivalent assets on the multi-let industrial side, which should support earnings and help rebuild dividend cover – a key priority for this business.”