With retail parks having mostly outpaced shopping centres in footfall and sales both immediately after the pandemic and beyond, it’s no wonder they’re also a key target for investment. 
 

The multi-let warehouse investor Warehouse REIT (the word REIT stands for real estate investment trust) is taking advantage of the sector’s success with the part-purchase of the Ventura Retail Park near Birmingham.
 
It has acquired Phase 2 of the park, a 13-unit scheme in Tamworth, for £38.6 million, representing a net initial yield of 7.4%. 

Built in two phases, Ventura claims to be one of the top 20 shopping parks in the UK by square foot. Phase 2 covers 120,000 sq ft and, importantly, is fully let and includes major names such as Sports Direct, H&M and Boots. Contracted rent across the scheme is £3.1 million.
 
Ventura is part of a larger retail cluster covering over 700,000 sq ft of prime space, with occupiers including Next, Primark and M&S “and ranks in the top three centres for comparison goods spend in the UK”, Warehouse REIT said. 
 
Simon Hope, Warehouse REIT spokesman, said of the purchase: “This was a rare opportunity to acquire an asset that will be earnings enhancing in year one. Retail warehousing is a sector where we have deep experience, and which plays to our strengths in multi-let asset management.”
 
The retail park sector has garnered a good deal of interest, with the ever-hungry Frasers Group having a collection of them in its expansive portfolio.
 
And a major endorsement comes from property giant British Land which has hitched its waggon to retail parks as the sector of choice to deliver success, exiting other retail destination types to double down on retail parks.
 
With an 8% share of the market (the UK’s largest), it said late last year its investments are “going very well,” with demand strong from both retailers and consumers.