UKREiiF attendee BMO Real Estate Partners (BMO REP), the pan-European property investment and asset management specialist arm of BMO Global Asset Management (EMEA), has acquired a Lidl store in Chichester, West Sussex for £9.5 million, reflecting a 4% net initial yield. The investment has been undertaken on behalf of a separate account mandate, for which the acquisition of a logistics asset in Birmingham has also completed following a forward funding agreement. Both properties have been secured off-market.
The first acquisition comprises a 22,879 sq ft modern, purpose-built supermarket constructed to Lidl’s latest specification, with parking for 133 vehicles and a WAULT of 23 years. It is situated around one mile to the north east of the centre of Chichester in an established out of town retail location off the A285, leading into the city centre and linking to the A27, which connects Eastbourne with Southampton. The A27 also connects Chichester to the M27, M275 and M3 motorways.
On behalf of the same client, BMO REP has also completed the acquisition of a single let logistics asset, Barberry 57, having signed a £11 million forward purchase agreement in December 2020, reflecting a 4.6% net initial yield. The newly constructed unit, which has been acquired from Barberry Industrial Ltd, totals 56,800 sq ft and is let on a 15 year lease, with a break at 10 years, to IMI TruFlo Marine, a subsidiary of the FTSE 250 listed IMI plc, who will use it as their headquarters. It also has a car park with 82 spaces, including nine electric vehicle bays, and is located just north of Birmingham city centre, close to junction 6 of the M6.
Matthew Howard, Fund Manager at BMO REP commented: “We’re pleased to start off the new year by adding these two high quality, well located new build assets to our client’s portfolio, which we were able to secure off-market in a competitive environment. Both investments, which offer excellent energy efficiency standards and are let on long leases to strong covenants, continue our strategy of recycling capital into growth assets providing long term, secure income.”
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