US Realty Income has completed its acquisition of two UK retail parks from Tritax Group and Delancey for £157.25 million or a 6.45% yield.
Tritax and Delancey sold the freehold interests in County Oak Retail, Crawley, and the Solihull Retail Park, Solihull. The combined parks total circa 353,843 square feet of shopping centre retail buildings.
County Oak Retail Park comprises 155,553 square feet of retail warehouse accommodation with additional mezzanine space of 87,858 square feet and produces an income of £5,105,610 a year, reflecting £32.58 per square foot. Tenants include Next, Boots, TK Maxx, B&M and Curry’s. It was brought to market in October 2024 for £83.14 million for an initial yield of 5.75%.
Solihull Retail Park is an 198,290-square-foot park at the heart of a 525,000-square-foot out-of-town retail destination cluster in Solihull. The park is let to B&Q, Currys, ScS, Carpetright, Hobbycraft, Halfords, Pets at Home, Dreams, B&M, Starbucks and Subway at a total rent of £5,743,629 per annum. It had been brought to market in 2023 for £93.53 million and a net initial yield of 5.75%.
XPROP advised Realty while Knight Frank and Staunton Whiteman advised Tritax and Delancey.
According to Knight Frank the transaction is the largest retail warehouse acquisition of 2025. It reports that retail warehousing investment totalled £881 million in the first quarter, down from the bumper £1.8 billion seen in the final quarter of last year but comfortably ahead of the £746 million five-year average.
Knight Frank reports that investment in the subsector in the first quarter totalled 68% of all retail investment, propping up the wider sector.
The US's Realty Income, led by former investment banker Sumit Roy, has been the most active buyer of long-lease supermarkets and retail parks in the UK since entering the market in 2019 when it bought 12 Sainsbury’s supermarkets, jointly owned by British Land, for £429 million. It has spent more than £2 billion buying supermarkets, DIY stores and more than 30 retail parks.
In the UK it most recently bought Arnison Shopping Park in Durham in the North East from CBRE Investment Management for £105.94 million and a three-strong UK retail park portfolio for around £220 million from AshbyCapital, as reported.