WP Carey expands UK portfolio with Manchester retail park acquisitions

US-listed REIT WP Carey has expanded its UK portfolio with the acquisition of two shops at M Park Lime Square retail park, Manchester, for £20m. The assets comprise an 80,000 sq ft Morrisons store and a McDonald’s drive-thru. Both properties are leased on a triple-net basis with built-in rent growth. Morrisons is the anchor tenant of the 156,000 sq ft Lime Square, which is owned by LCP Group, part of M Core. LCP acquired the freehold of the park in 2021 for £9.8m. This transaction follows WP Carey’s acquisition in January 2024 of a UK supermarket and an associated petrol station leased to Morrisons. WP Carey’s holdings as of June 30, 2024, include 1,291 net lease properties spanning some 170m sq ft and 89 self-storage assets. Christopher Mertlitz, head of European investments at WP Carey, said: “This acquisition underscores our commitment to securing high-quality opportunities in the grocery retail sector. “Morrisons and McDonald’s are trusted and enduring brands, and these assets, located in a thriving urban area, are exemplary additions to our portfolio”.