Schroders Capital Real Estate Fund secures two 'major' tenants at Romford scheme

London-based Schroders Capital UK Real Estate Fund (SCREF) has completed lettings to major restaurant brands Wagamama and Turtle Bay at The Brewery, its recently-acquired prime supermarket anchored, retail warehouse and leisure scheme in Romford, Essex.

The new lettings, as well as a lease extension with existing tenant Cosmo, come after SCREF announced in May the completion of 121,000 sq ft of new retail and food and beverage (F&B) lettings across its retail warehousing assets across the East of England. Deals were signed in Kent, Essex, and Norfolk, highlighting the continued strong demand for space in well-positioned schemes in this market.

The deals take The Brewery to 98 per cent let by Estimated Rental Value following SCREF’s £162m acquisition of the scheme in January in partnership with Zurich Investment Foundation Immobilien Europa Direkt (IED, a Schroders Capital-managed pan-European strategy).

Turtle Bay, the Caribbean restaurant and bar chain will occupy a 3,773 sq ft unit on a 15-year lease and is set to be open in the coming weeks. The rapidly expanding Barbados-founded chain, which offers Caribbean cuisine as well as exotic cocktails, has over 40 restaurants in the UK.

Meanwhile Wagamama will move into a 3,478 sq ft unit, also on a 15-year lease, with the popular Japanese chain set to open its first Romford outlet later this year. Famous for its fried noodles and curry dishes, the restaurant has become an in-demand occupier for many UK retail and leisure assets with over 150 outlets across the UK.

As well as the new arrivals, Cosmo, the all-you-can-eat buffet restaurant, has signed a seven-year lease extension for its 8,298 sq ft unit. The family-friendly restaurant offers over 150 dishes from around the world and has been a popular F&B outlet for The Brewery since it opened in the 2000s.

The 21-acre site with 545,478 sq ft of retail and leisure space is already home to well-known brands such as Sainsbury’s, Nuffield Health, The Range, Boots, Pure Gym, and a 16-screen Vue Cinema as well as other popular F&B outlets such as McDonalds, Zizzi, Nando’s, Frankie & Benny’s and TGI Fridays.

Since SCREF’s acquisition of the site, it has used the considerable experience and expertise of the wider Schroders Capital team to add value with these new lettings, drawing on existing relationships with occupiers across the sector. The Schroders Capital team will continue to identify further ways it can enhance

The Brewery also has plans to install better signage, improve the roofs, increase the number of electric vehicle charging points, add solar panels, and introduce better contactless payment for parking.

With typical rents and service charges lower than shopping centres, Schroders Capital expects demand for retail park units from discount retailers, convenience-led occupiers, gyms, as well as coffee and ‘grab-and-go’ food chains to continue.

By Mark Adair – Correspondent, Bdaily