Tritax strikes deal on £190m retail park trio
Tritax Group has exchanged contracts to buy a retail park portfolio for around £190m from Standard Life Investments, in a deal of significant scale for the beleaguered sector.
This trio sits in the Standard Life Investments UK Retail Park Trust, and the deal reflects a net initial yield of around 7%.
Two of the properties – Ladymead Retail Park in Guildford and County Oak Retail Park in Crawley – were each valued at £80m-£90m earlier this year, while Luton Retail Park was valued at around £40m-£45m. It can therefore be viewed as a slight discount to book value.
Tritax Group has exchanged contracts to buy a retail park portfolio for around £190m from Standard Life Investments, in a deal of significant scale for the beleaguered sector.
This trio sits in the Standard Life Investments UK Retail Park Trust, and the deal reflects a net initial yield of around 7%.
Two of the properties – Ladymead Retail Park in Guildford and County Oak Retail Park in Crawley – were each valued at £80m-£90m earlier this year, while Luton Retail Park was valued at around £40m-£45m. It can therefore be viewed as a slight discount to book value.
The deal means Standard Life is close to selling half of the properties in the trust. There are three other retail parks in it, including Gallions Reach Shopping Park in Beckton, E6, and Central Six in Coventry.
Tritax already has two retail parks, held in its Property Income Fund: Pierpoint Retail Park in King’s Lynn, which it bought in 2016, and Alban Retail Park in Bedford, acquired in 2017.
But when the deal completes, it could mark the first time that an industrials-focused investor has placed its bets on a retail purchase of this scale.
Given that retail parks are often in ideal locations for logistics facilities, industrial investors have had their eye on investment opportunities for some time now.
However, several pure-play companies are wagering that retail park values have further to fall before making bolder investment decisions in the troubled sector.
It is understood that Staunton Whiteman is advising the buyer. All parties declined to comment.
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