(Alliance News) - Alternative Income REIT PLC on Tuesday said it will acquire Droitwich Spa Retail Park for GBP4.8 million in an off-market transaction in its first investment introduced by investment adviser M7 Real Estate Ltd.
Droitwich Spa Retail Park's two tenants are B&M European Value Retail SA, a variety goods value retailer that provides 67% of the park's total income and Pets at Home Group PLC, a UK pet care business that makes 33% of the total income. The park has a weighted average unexpired lease term of seven years, with a passing rent of GBP403,654 per annum.
Chair Steve Smith said: "This investment fits within the parameters of the existing investment policy and importantly deploys the disposal proceeds of the group's recently sold Wet 'n' Wild Water Park, at a materially higher yield than both the exit yield on the sold asset and the group's latest portfolio valuation yield."
He added that this acquisition is expected "to provide a robust, defensive, long term income return, in a market which is also expected to benefit from growth in income and capital value."
The UK-based real estate investment trust expects the acquisition to be completed later this week.
Shares in Alternative Income REIT were down 1.5% at 63.55 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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B&M (BME)
Pets at home (PETS)
Alternative Inc (AIRE)