Charities Property Fund buys £16.3m B&Q warehouse

Finance | 28 Oct 2009

The Charities Property Fund has bought a B&Q warehouse in Worcestershire for £16.3m, making it the largest asset in a property portfolio now worth £229m.

The Fund acquired the 102,500 sq ft retail warehouse from global real estate investment managers PRUPIM for a net initial yield of 7.5 per cent, although this reflected a yield of 7.9 per cent to the Fund as it is stamp duty-exempt.

Harry de Ferry Foster, director of fund management at Cordea Savills which advised the Fund, said: “This deal was sourced off-market at a time when there is a shortage of investment-grade property for sale and plenty of competition for such assets, demonstrating the ability of our team to acquire quality properties.

“While the retail warehouse weighting in the fund is higher than our target, we feel that this is appropriate due to an attractive income return and a strong covenant.”

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