On behalf of an overseas family office, SSC has acquired from Harbert the Omaha Portfolio for £43M. The Omaha Portfolio comprises 9 well-located freehold retail warehouse assets totalling 473,672 sq ft with 8 in England and 1 in Scotland.
The portfolio is 96% occupied with tenants including Matalan, B&M, TK Maxx, Wickes, The Range, Homebase, B&Q, Halfords, Dunelm, Pets at Home and Pure Gym. The portfolio has a gross rent of £5,068,000 per annum which reflects a low average passing rent of only £10.70 per sq ft.
The purchase price reflects an initial yield of 11.01% and a low capital value of £91 per sq ft.
There are a number of asset management opportunities to increase the rents and WAULT through lettings, lease renewals and some drive-thru opportunities.