Edmond de Rothschild Real Estate Investment Management has acquired two retail warehouse assets in England for a combined €17.5m, marking its fifth and sixth UK deals in nine months. The firm is acting on behalf of a diversified pan-European strategy, and this move pushes its total UK investment past €42.1m.
The larger of the two purchases is a 3,121 m² asset in South Ruislip on Victoria Road, which cost €12.6m at an initial yield of approximately 7.3 per cent. It’s let to home improvement retailer Wickes on a lease with 19.2 years remaining.
The second acquisition is a 1,858 m² property on Wootton Bassett Road in Swindon, bought for approximately €5m at a yield of around 8 per cent. It’s let to furniture retailers DFS and Sofology on leases with 13.5 years remaining each.
Together, the deals extend EdR REIM’s UK portfolio to an average remaining lease term of over 17 years and full occupancy. This combination is becoming harder to find as retail warehouse rents and valuations climb due to persistently tight supply.
EdR REIM’s UK team was advised by DLA on legal matters, PMP on technical due diligence, and JM&Co as agents. They demonstrate the firm’s ability to identify high-performing assets that provide investors with predictable, long-term returns.
Six UK acquisitions in nine months suggest EdR REIM is treating this moment as a window rather than a one-off opportunity. The retail warehouse sector’s combination of value-led tenants, high retention, and easy drive-to access has made it the best-performing out-of-town asset class currently available.
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For investors still underweight UK retail parks, that vacancy-driven repricing may not stay this favorable for long. EdR REIM’s expansion into the retail warehouse sector integrates a new asset class into what is now a truly diversified portfolio.
Klaus Georg Schmitz, CIO at EdR REIM, said the transactions demonstrate the remarkable ability of the firm’s local teams to identify high-performing assets. Gavin Munn, Head of Acquisitions at EdR REIM, added that the recent deal flow sees the firm continue to create a diverse geographical and sectoral spread of long, well-secured income.
The firm’s rigorous underwriting process and proven record of performance have contributed to its success. EdR REIM’s UK portfolio now has an average remaining lease term of over 17 years, providing investors with predictable returns via long-term leases and strong covenants.
The retail warehouse sector’s fundamentals are strengthening, driven by record-low vacancy rates and increasing demand for out-of-town properties. EdR REIM’s move into this sector aims to capitalize on the sector’s potential for long-term growth and returns.
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