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B&Q portfolio stores acquired in sale-and-leaseback deal

Published: 3 July 2019 - Fiona Garcia

Three B&Q stores – equating to a retail store portfolio of 306,000sq ft – have been acquired by Palmer Capital by way of sale and leaseback.

The real estate investment management company has taken on three solus B&Q stores in Birmingham, Cardiff, and Washington, with the assets acquired on behalf of a separate account mandate.

It follows speculation last year that funds raised from the sale and leasback of six B&Q stores would be used to fund Kingfisher's transformation plan. At the time, the global home improvement chain expained: “We are exploring opportunities for the sale and leaseback on a small number of B&Q properties. These are good stores, in good locations where B&Q operates successfully. As a normal course of business, we regularly review our property portfolio to ensure it is operated as efficiently as possible.”

The units snapped up by Palmer Capital, which are all around 100,000sq ft and were developed between 1998 and 2001, are now let on new 15-year full repair and insurance (FRI) leases.

Palmer Capital believes the acquisition reflects a “targeted focus towards the more resilient, home improvement end of the retail market”.

Palmer Capital head of acquisitions Charles Allen said of the deal: “These assets are a strong match for our clients’ investment requirements and are an example of their continued confidence in the UK economy. The new 15-year leases to a subsidiary of an investment grade credit, will provide sustainable and progressive income returns for our investors. We are actively seeking similar transactions.”



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