The Schroder UK Real Estate Fund (SREF) has announced it has partnered with Zurich Investment Foundation Immobilien Europa Direkt (‘IED’, a Schroders Capital managed, pan-European strategy) to acquire “The Brewery”, a prime supermarket anchored, retail warehouse and leisure scheme in Romford, Greater London for GBP162 million in a 50:50 joint venture.
The Brewery comprises a 21-acre site with 545,478 square feet of retail and leisure space anchored by national operators including a Sainsbury’s superstore, Nuffield Health, The Range, Boots, Pure Gym, a 16-screen Vue Cinema and several food and beverage outlets including Wagamama, Starbucks and Costa Coffee. The scheme also benefits from 1,750 car parking spaces and strong sustainability credentials including BREEAM in-use accreditation.
The acquisition follows research from Schroders that retail park rents are expected to stabilise, with customer footfall at retail parks currently 3 per cent ahead of pre-pandemic levels. With typical rents and service charges being lower than shopping centres, Schroders expects there will be continued demand for retail park units from discount retailers, convenience-led occupiers, gyms as well as coffee and ‘grab-and-go’ food chains. The sector looks set to outperform other markets, underpinned by the active occupational market and the relatively high-income returns.
The Schroders Capital team are well placed to take the scheme forward following the acquisition and will look to deploy their considerable experience and expertise in the retail and leisure sectors to deliver performance. The specialist retail team at Schroders will combine strong existing relationships with occupiers across the sector with a collaborative and operationally focused mindset, a strategy that has demonstrated success at major schemes at Bracknell, Hammersmith, and Cardiff over recent years.
The Brewery also offers longer term alternative use potential, being located within the Romford Strategic Development Area. SREF has a strong placemaking track record, with several projects currently underway including Ruskin Square in Croydon, where over 500,000 square feet of highly sustainable office space has been let to the UK Government and at Cambridge North, where SREF is developing the first 100,000 square feet prime, Grade A office building at the 35-acre mixed-use urban quarter.
HampsonWall, CSP, Montagu Evans and Stephenson Harwood acted for the joint venture on the acquisition.
Source: built-environment-networking.com on the 24th of January