Salmon Harvester Widens Strategy
SHP Opportunity Fund has bought an industrial investment in Deeside from Scottish Widows Investment Partnership for £5.5m.
SHP Opportunity Fund has bought an industrial investment in Deeside Industrial Park from Scottish Widows Investment Partnership for £5.5m, as the fund broadens its horizons to drive a planned further £80m spend this year.
The deal for the £150m fund set up by Salmon Harvester Properties and NFU Mutual represents a net initial yield of 9.45% and follows the acquisition of the Droitwich Spa shopping centre in March for £20m.
The property which totals 169,000ft2 is let to Excelsior Technologies on a 20 year lease at a rent of £2.99 psf which has a guaranteed minimum uplift at first review to £3.70 psf.
Matthew Meaden, Fund Manager, said: “This property is well let to a strong covenant and the high income yield will provide above average returns to our investors. The deal is our second purchase this year, following our recent acquisition of St Andrew’s Square, Droitwich.”
The acquisition by the fund marks a change of strategy.
Doug Stewart says the acquisition by the fund marks a change of strategy as the fund is now also looking at drier investments in terms of asset management opportunities in the £7m to £8m range. “We felt that Deesside was undervalued at a 9.45% yield. We have widened the rules on the fund and will be more flexible to target assets with strong covenants on long leases in locations that will improve strongly in the recovery.”
Salmon Harvester Properties is also seeking development opportunities, particularly in the “big nine” regional centres.