Page 17 - DIY Investor Magazine - Issue 23

17 DIY Investor Magazine | Oct 2019
‘OUT-OF-TOWN RETAIL PARKS ARE EMERGING AS WINNERS’
From the retailer’s perspective, both ‘click and collect’ and returns bring customers off the internet and into the stores, where they can be tempted to make additional purchases.
Out-of-town locations are ideal for ‘last-mile’ delivery and the storage of goods bought online, so many retailers are taking advantage of retail parks’ strategic locations to maximise the efficiency of their deliveries.
It’s this combination of online and offline that makes retail parks such an attractive investment. We foresee a future in which the major chains have fewer stores on the high street and much better out-of-town representation in retail parks.
‘Bricks’ and ‘clicks’ will work together to deliver the consumer’s preferred experience – and retail parks will be pivotal in facilitating that.
Not all retail parks are equal, however; at Ediston, our investment approach is highly selective. We avoid more than 60% of the retail-park subsector because we’re only interested in parks that dominate their local area.
Nor are we interested in ‘over-rented’ properties – where rents are too high and are will be difficult to sustain when leases expire. Instead, we favour parks with affordable rents and the potential for us to improve returns through intensive asset management.
We aim to get under the skin of each property we own so that we can secure and improve the income streams for our investors. Our conviction in the right retail parks is so strong that we intend to build one of our own at our site in Haddington, outside Edinburgh.
We’ve had abundant interest from potential tenants, and we expect most of the units to be let well before construction starts. Retail isn’t dying – far from it. But it is evolving. We aim to harness that evolution on our investors’ behalf.
As e-commerce evolves into omnichannel, we’re confident that the best retail parks have the locations, facilities and flexibility to prosper in the online age.
‘OUR CONVICTION IN THE RIGHT RETAIL PARKS IS SO STRONG THAT WE INTEND TO BUILD ONE OF OUR OWN’
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EDISTON PROPERTY INVESTMENT COMPANY PLC
Ediston Property Investment Company (‘Ediston’) is a UK-listed Real Estate Investment Trust (REIT) investing in commercial Property throughout the UK www.epic- reit.com
The contents of this article should not be construed as legal, tax, investment or other advice. Each prospective investor should make its own enquiries and consult its professional advisers as to the legal, tax, financial and other relevant matters and risks concerning any investment opportunity.
Past performance is not a reliable indicator of future performance – the value of a stock market investment and any income from it can fall as well as rise and investors may not get back the amount invested.
Whilst information contained in this article is believed to be accurate at the date of publication, it is subject to change and does not purport to provide a complete description of Ediston Property Investment Company Plc (the “Company”) or its future prospects or performance. Any forecast, projection or target is indicative only and not guaranteed. In particular, the payment of dividends and the repayment of capital are not guaranteed. The Company invests in property assets which can be highly illiquid, typically do not grow at an even rate of return and may decline in value, all of which may have a negative impact on the value of the Company.
To the fullest extent permitted by law, The Company, Ediston Investment Services Limited and their respective directors, advisers or representatives shall not have any responsibility or liability whatsoever for any loss (whether direct or indirect) arising from the use of this documents or its contents.
Issued and approved by Ediston Investment Services Limited which is authorised and regulated by the Financial Conduct Authority (FRN:706655)