Invista commits to retail warehouse development
Published: 17 May, 2010
Invista Real Estate Investment Management has announced a commitment to the forward funding of a retail warehouse development in Guildford. The site is being developed by Travis Perkins (Properties) Limited (TPP) on behalf of Travis Perkins Plc (TP) and has been pre-let to a TP group company – Wickes Building Supplies Limited – for 25 years.
The 33,000-sq ft development has been acquired from TPP for a total consideration of £18m, representing a net initial yield of 5.65 per cent. Situated at the junction of Woodbridge Road and Ladymead, it is located in a prime area of Guildford – one of the strongest retail markets in the south east. Due for completion in December 2011, Wickes will occupy the home improvement store on a 25-year lease with RPI linked rent reviews.
Rob O’Hara, head of group funds at Invista, commented: “This is an exceptional forward funding opportunity and we are very pleased to be working closely with a specialist partner such as Travis Perkins on its delivery. We believe it is a great investment, offering our client a guaranteed income stream and long-term value. Guildford is one of the strongest retail warehouse markets in the country and Wickes, one the leading DIY operators, offers a solid covenant.”
CBRE acted on behalf of Invista and King Sturge represented Travis Perkins Limited.
