PMP advises on £15m retail warehouse acquisition for Edmond de Rothschild REIM

Director Mark Humphries led Technical Due Diligence on two retail warehouse assets in South Ruislip and Swindon, acquired by Edmond de Rothschild Real Estate Investment Management for a combined £15 million.

PMP has advised on the Technical Due Diligence (TDD) supporting Edmond de Rothschild Real Estate Investment Management’s (Edmond de Rothschild REIM) £15 million acquisition of two UK retail warehouse assets. The due diligence was led by PMP Director and Building Surveyor, Mark Humphries.

“As Building Surveyors, we invest in the successful completion of the acquisition, not just our survey. The highlight of any TDD for me is when the client confirms a successful completion,” said Mark Humphries, Director at PMP.

“This is one of many new instructions we’ve attracted through our strong market relationships, knowledge and specialist expertise as a property partner.”

The news was first reported by BeNews.co.uk:

The first asset, a 33,600 sq ft warehouse in South Ruislip, was acquired from Aviva Investors for £10.75 million, reflecting an initial yield of approximately 7.3%. The property is let to Wickes, with 19.2 years remaining on the lease.
The second, a 20,000 sq ft warehouse on Wootton Bassett Road in Swindon, was acquired from Somerset Council for £4.24 million, reflecting an initial yield of approximately 8%. The asset is let to DFS and Sofology, with 13.5 years remaining on both leases.

The acquisitions mark Edmond de Rothschild REIM’s first move into the retail warehouse sector and its sixth UK acquisition in the past eight months. Edmond de Rothschild REIM was advised by DLA Piper, PMP and JM & Co.

Reported in BeNews.co.uk, Klaus Georg Schmitz, CIO at Edmond de Rothschild REIM, said: “These transactions demonstrate the remarkable ability of our local teams to identify high-performing assets that provide our investors with predictable, long-term returns via long-term leases and strong covenants. The deals also mark our expansion into the retail warehouse sector, integrating a new asset class into what is now a truly diversified portfolio. This success is undoubtedly built on our rigorous underwriting process and proven record of performance.”

Gavin Munn, Head of Acquisitions at Edmond de Rothschild REIM, added: “We are delighted to have acquired our first two retail warehouse assets in the UK, bringing our total number of acquisitions in the last eight months to six. Our recent deal flow sees us continue to create a diverse geographical and sectoral spread of long, well secured income.”

Mark Humphries is a Director and Building Surveyor heading up PMP’s Bristol office, specialising in professional building services such as dilapidations and party wall matters, and acting as an expert witness. The Bristol and London team continues to grow from strength-to-strength, with an experienced team of building surveyors and project managers whose combined expertise spans all aspects of building surveying across a range of sectors. The team is moving to new premises in Bristol this autumn to support the growth and ambitions of PMP’s Bristol and southern presence, driven by market demand.