Ediston Property Investment Company plc has acquired Plas Coch Retail Park in Wrexham for £22.4 million (net of acquisition costs) from Diageo Pension Trust Limited. The net initial yield is 7.35% from March 2016, on expiry of a rent-free period. The acquisition was funded from existing cash resources.
Plas Coch is a well-located retail park, totalling 94,000 sq. ft., adjacent to a Sainsbury’s supermarket and an Aldi foodstore. It is let to seven national tenants and benefits from a weighted average unexpired lease term (WAULT) in excess of 10 years. TK Maxx has recently relocated to the park from Wrexham town centre, reinforcing the attraction of the park to retailers.
The Company has invested £142 million in 12 assets since listing in October 2014. These acquisitions, coupled with successful asset management initiatives, have resulted in the WAULT of the portfolio doubling to 10.13 years over the same period, providing good income security for shareholders.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company’s Investment Adviser, said: “The purchase continues our strategy of growing the Company in a sustainable and credible manner by acquiring high-quality assets with a solid income stream and asset management angles to exploit. The yield is attractive and is in line with our investment strategy”.