The Consorto Deals Summary 28 September concentrates on UK office and retail acquisitions in the major cities of London, Birmingham, Manchester and elsewhere.
Landmark Birmingham office fetches £40m
Location and details: Colmore Gate office in Birmingham, UK, has 171,834 sq ft of office and retail space across 18 storeys.
Buyer: Ashtrom Properties UK. The flickr image is by Elliott Brown https://www.flickr.com/photos/ell-r-brown/3825300869.
Seller: Aviva Investors
Price: £40 million
Ashley Hudson, Head of the Birmingham office at Knight Frank, says, “Birmingham’s office investment market had a bumper Q4 2020 with over 50% of the city’s £228 million of transactions closing in the final quarter of the year. Occupier activity is equally robust despite the impacts of the pandemic, with take-up in Q2 2021 reaching 203,499 sq ft. This deal showcases not only the strength of the asset, but also the increasing appetite for investment into the city.”
Six supermarkets bought for £113m
Location and details: A Tesco supermarket in Prescot, two Morrisons in Durham and Cumbria, an Aldi in Oldham, and an Aldi and M&S Foodhall in Liverpool. with a combined net sales area of 210,000 sq ft. have been acquired.
Buyer: Supermarket Income REIT
Price: £113.1 million
Ben Green, Director of Atrato Capital Limited, the Investment Adviser to SUPR says, “These acquisitions provide geographic and tenant diversification, with the purchase of our first M&S Foodhall, as well as exposure to a number of high-quality omnichannel supermarket assets. With an aggregate WAULT of 15 years, they support our strategy to deliver attractive long-term income.”
Trafford Retail Park sells for £33m
Location and details: Trafford Retail Park in the heart of Traffordcity, one of the UK’s leading retail and leisure destinations, near Manchester, consists of around 12 acres with approximately 143,000 sq ft of retail warehouse accommodation across 14 units, ranging in size from 2,000 to 35,000 sq ft. The image is by David Newton and is from Geograph.
Buyer: UK Commercial Property REIT
Seller: Peel L & P
Price: £33 million
Fund Manager Kerri Hunter, says, “This deal presents us with an opportunity to strengthen our portfolio and enhance income through the acquisition of a well-located retail park with a high-quality tenant base and impressive footfall in one of the UK’s premier shopping and leisure destinations.While some parts of the retail sector have struggled in recent years, Trafford Retail Park is primarily let to discount focused and convenience led retailers, which have proven resilient and continue to perform well.”
London retail units acquired for £18m
Location and details: The grocery-led 41,000 sq ft building is let to the Aldi supermarket and B&M store. It has a WAULT of 9.4 years.
Price: £18 million
Andrew Jones, Chief Executive of LondonMetric, says, “The acquisition not only provides greater certainty of income growth but also further asset management opportunities.”