LONDON, UK—Valad Europe, a leading independent diversified real estate investment manager, has acquired five UK properties for a total of approximately $161 million (£100M) on behalf of its Valad European Diversified Fund (VEDF) and is undertaking a number of value-add asset management initiatives on the newly acquired assets.

Imperial Place, a 222,450 sq ft campus-style office complex in Borehamwood, just north of London, was purchased for $63.3 million (£39.3M), reflecting a net initial yield of 8%. Since completion, the asset's vacancy rate has been reduced by 2.5% with Artsana, the manufacturer and distributor of baby and health and beauty care products, signing a new 10 year lease on 5,713 sq ft of space. Imperial Place will be Artsana's new UK headquarters, which they will occupy alongside existing tenants including Pizza Hut, Signet Trading and Just Eat.

Five Ways Leisure Park in Birmingham was purchased for $56 million (£34.7M), reflecting a net initial yield of 8.1%. It comprises two buildings totalling 199,702 sq ft and is Birmingham city center's dominant leisure park. Anchored by a 12-screen Cineworld cinema, the Park is let to 12 tenants including Grosvenor Casinos, Pure Gym, Inventive Leisure, Nando's, Shimla Pinks, Gatecrasher and Euro Car Parks.

A number of asset management initiatives are being explored at Festival Leisure Park in Stoke-on-Trent which was purchased for $23.4 million (£14.5M) , reflecting a net initial yield of 7%. The 130,000 sq ft leisure park is let to Odeon Cinemas Ltd and Tenpin Ltd, a bowling operator. The building is located on Festival Park, adjacent to Festival Retail Park and close to other retail and leisure attractions on the edge of Stoke city centre.

In Cheadle, near Manchester, Poseidon House, a 36,000 sq ft office building, was acquired for $7.9 million (£4.92M), reflecting a net initial yield of 11.5%. The single-let building is let to Thales Properties Ltd, which also occupies four adjacent buildings.

In Blackpool, Valad Europe also acquired a 36,000 sq ft retail warehouse for $6.1 million (£3.8M), reflecting a net initial yield of 7.8%. The single-story retail warehouse which is let to Homebase for 10 years, includes a garden center and 215 parking spaces.

David Kirkby, Valad Europe's Chief Investment Officer, commented: “We have had a very busy investment period over the summer, completing on more than $161 million (£100M) of UK acquisitions. We have now purchased 13 UK assets for VEDF which we believe are well positioned to benefit from the gathering recovery in the UK economy as it spreads to some regional locations. The high initial yields and diversified income provided by these properties are typical of the portfolio we are building.

At Imperial Place, Deloitte acted for Valad Europe and CBRE for the vendor; at Five Ways Leisure Park, GVA acted for Valad Europe and Cortex Partners for the vendor; at Festival Leisure Park, John Miles & Co. acted for Valad Europe and MBH LLP and Lunson Mitchenall acted for the vendor; at Poseidon House, Valad Europe was unrepresented while Savills acted for the vendor; and at Blackpool, Cheetham & Mortimer acted for Valad Europe and Jones Lang LaSalle acted for the vendor.

The Valad European Diversified Fund is an $1.29 billion (£800M) fund which employs leverage between 50 - 65%. The Fund invests in core plus / value add assets in the UK, Germany and France.

Valad Europe manages $5.8 billion (€4.5B) of investment and assets across its funds and mandates in Europe, with 500 assets and 4,000 tenants, managed by local teams totaling 215 people in 22 offices and 13 European countries.