INVESTRA CAPITAL DISPOSES OF BRACE OF WICKES RETAIL WAREHOUSES

Off-market disposals demonstrate depth of demand for long-dated income

The remaining assets from the Dakota Portfolio, a strategic sale and leaseback of eight retail warehouse units by Wickes, have changed hands in two separate deals, representing an aggregate yield of 4.71%.

The portfolio was acquired by clients of Investra Capital in 2017, with a number of the units subsequently repackaged as the DIY Income Portfolio and sold to Realty Income for £26m in 2021.

Following an off-market approach, the two remaining units in Corby and Norwich have been acquired in deals worth £10.925m and representing an aggregate yield of 4.71%.

The unit at Cockerill Road, Corby comprises 20,233 sq ft GLA and was acquired by private clients of Lindley Mortimer for £3.925m, reflecting a net initial yield of 4.63%, while the 25,000 sq ft unit at Turnpike Close, Norwich was sold to private clients of Rapleys for £7m, reflecting a net initial yield of 4.79%.

Both units are let to Wickes on 15-year leases, expiring in March 2032.

Suggested quote from Investra Capital: “Both these assets align perfectly with our clients’ focus on long leased assets in the retail warehouse, supermarket and operational real estate spectrum. As demand for similar opportunities has grown, we have made a strategic disposal to capitalise on current market conditions to crystalise returns for our investors.”

Oliver Spero, director at Cyril Leonard, said: “These deals demonstrate the depth of demand for long-dated income from private clients and family offices. In these uncertain times, investors are clearly in search of secure income and are willing to place a premium on it.”

The disposals were made on behalf private clients of Investra Capital, advised by Cyril Leonard.