DTZ Investors has acquired Aldi and The Food Warehouse on Watling Street in Bletchley for £12.985m, representing a net initial yield of 4.0%, which rises to 4.3% in June 2022.
The property comprises two adjoining retail warehousing units totalling 37,100 sq ft, occupied by Aldi and The Food Warehouse following an extensive reconfiguration and refurbishment of the property in 2017.
The asset provides a total rental income of £555,000 per annum and provides an attractive unexpired lease term of 10.6 years.
In addition to the attractive income duration, the lease at Unit A, occupied by Aldi, benefits from RPI index linked reviews, further enhancing the income characteristics. The property also benefits from A rated EPCs.
Tom Royston, Director at DTZ Investors, commented: ”We are delighted to have completed this acquisition in Bletchley. The trading performance of the tenants, combined with the RPI linked reviews within the Aldi lease, provides attractive characteristics and aligns well with our requirement for well let convenience anchored retail in strong urbanised locations. We continue to see value in the retail warehousing sector and continue to look for new opportunities.”
