Closed Fund

UK Retail Warehouse Fund

Offers investors exposure to a range of retail warehouse park investments, in what is a competitive part of the UK real estate market.

Key facts

Target sector UK retail warehouse parks
Target return The objective of the Fund is to deliver to unitholders a Fund total return in excess of that delivered by the retail warehouse component of the Investment Property Databank (IPD) UK Quarterly Universe, excluding any impact of the performance of the Fund.
Fund structure Closed-ended Jersey Property Unit Trust
Fund term Extended to December 2021, plus two-year wind-down and further options to renew
Currency Sterling
Fund value £1.1bn (c.$1.4bn)
No. of assets 13 (plus one adjoining ownership)
Max gearing Limit of 50% GAV
Fund Manager Jamie Johnson
Investment strategy

Establish and maintain a geographically diverse portfolio of prime retail warehouse assets.

Gain exposure to properties where above average rental growth may be anticipated whilst maintaining a market level of portfolio income.

Assets secured by leases of acceptable length, with the majority let to strong covenants.

Actively manage the portfolio to maximise returns in the face of changing retail requirements.

Proprietary research and forecasting techniques are applied to each property to eliminate inappropriate risks and to enhance stock selection.

Responsible Property Investment (RPI) strategy

The Fund's RPI focus is on those assets where we have most influence over sustainability performance. These assets have dedicated actions plans, including environmental and community projects. We have won several Green Apple awards and aim to continually widen the scope of our programme, for instance with the implementation of an Energy Reduction Programme. 

Further information on TH Real Estate's RPI strategy

Global Real Estate Sustainability Benchmark (GRESB)

The Fund was awarded a GRESB Green Star for the sixth consecutive year, and was ranked first in its peer group of UK retail property funds. The Fund exceeded its peer group average in all of the seven benchmark aspects, achieving the best overall score to date. In addition, the Fund achieved the highest GRESB rating of five stars, demonstrating upper quartile performance and reflecting its rank as 18th out of the entire universe of 733 GRESB participants. 

Note: Target returns are not guaranteed and past performance is not a guide to future performance.
Source: TH Real Estate, December 2016

 
Jamie Johnson

Jamie Johnson

Fund Manager

Jamie's biography
The Fund has a strong portfolio of dominant prime retail park assets providing approximately 3.2 million sq ft (c.296,000 sq m) of floorspace and let to c.110 retailers on over 300 tenancies.
Manchester Fort Shopping Park, Manchester

UK Retail Warehouse Fund extension

In 2014, our c.$1.6bn UK Retail Warehouse Fund secured a six-year fund life extension. The original Fund, which was due to expire in December 2015, will now run until December 2021 with further options to extend.

The Fund invests in prime retail warehouse parks across the UK, with a portfolio comprising 14 schemes. Recent activity includes the acquisition of an additional stake in Ashford Retail Park (Phase 2), the sale of Blackwater Shopping Park in Farnborough, and ongoing development activity across a number of assets, including Weavers Wharf in Kidderminster and Central Retail Park in Manchester.

We worked collaboratively with our investors to ensure they were engaged at every stage of the process, which we initiated at the end of 2012. In addition to the six-year extension, the Fund has been restructured to accommodate a number of changes, including the ability to raise equity - up to 10% p.a. - in addition to an ‘in-specie’ allowance, which enables the Fund to issue new units in exchange for retail assets.

In 2015, the Fund secured a new c.$590m debt financing, replacing the current financing which was due to mature at the end of 2015.

Debenhams - Weavers Wharf

Weaver's Wharf, Kidderminster, UK

Since acquisition in 2006, the Fund has identified and implemented opportunities for asset management through various development and leasing initiatives including:

- Refurbishing and substantially extending a poor-performing listed Victorian mill building to create a new Debenhams department store.

- The anchor letting to Debenhams assisted in agreeing a deal with Clarks on the main retail terrace. This provided rationale for the Fund to increase rents substantially at the first round of rent reviews.

- The upper floors of the mill building were sold on a long leasehold basis to Premier Inn, improving the leisure offer and increasing sales at the existing restaurants.

- In 2012, a letting of the c.30,000 sq ft (c.2,800 sq m) Piano Building was completed to Birmingham Metropolitan College in partnership with Kidderminster College, who required the building for up to 1,000 students per year.

- Also in 2012, an under-utilised public seating area, adjacent to the river, was developed for a new Starbucks café.

- A deal to surrender the existing Brantano lease was agreed back-to-back with a new letting to Boots, that also incorporated a c.1,000 sq ft (c.100 sq m) extension to the unit.

The asset has achieved a 16.5% return during 2014.* In April 2014, the Fund received planning permission for significant development proposals that will further enhance the asset as well as Kidderminster town centre as a whole.

*Source: TH Real Estate, IPD, December 2014.

Wellington Retail Park

Wellington Retail Park

Since acquisition in 2010, several asset management initiatives have been implemented including:

- Reconfiguration of a c.30,000 sq ft (c.2,700 sq m) void unit to provide two new modern and well-configured units with additional car parking. These units were then leased to Home Bargains and Harvey’s, generating an income of c.£470,000 (c.$736,000) p.a. vs the estimated rental value (ERV) of c.£362,500 (c.$567,000) that had been placed on the original unit.

- Widening of the scheme planning consent from a part bulky goods / part Open A1 retail, to a full Open A1 non-food (including part food) permission. This facilitated a letting to M&S Simply Food that resulted in over 7% ERV growth across the main terrace, and a significant improvement in the retail offer at this location.

- Lease renewal of the Halfords unit for a new 10-year term above ERV.

- Obtaining planning consent for the development of a c.3,700 sq ft (c.345 sq m) retail terrace, partly pre-let to Costa coffee.

The asset has outperformed the Benchmark* since acquisition, achieving a 22.4% return during 2014.**

* The Benchmark is the retail warehouse component of the IPD UK Quarterly Universe.
 ** Source: TH Real Estate, IPD, December 2014.

Note: Past performance is not a guide to future performance.

Michael Neal

Michael Neal

Fund Director

Michael joined the business in June 2008 and has 20 years' experience in commercial real estate fund management, development and asset management. He is the Fund Director for the business' flagship £1bn+ UK Retail Warehouse Fund and Chair of the Investment Committee and Real Estate Debt Investment Committee.

+44 (0) 20 3727 8172 More about Michael
Jamie Johnson

Jamie Johnson

Fund Manager

With over 15 years of real estate experience, Jamie is Fund Manager for our £1.2bn UK Retail Warehouse Fund. He oversees all investment, development and asset management activities for the Fund.

+442037278158 More about Jamie
Katherine Friend

Katherine Friend

Head of Asset Management

With over 13 years' real estate experience, Katherine has been involved with several acquisitions and disposals for the business and has overseen key anchor lettings, developments and refurbishments across Fund portfolios.

+442037278146 More about Katherine
Mark Cruddas

Mark Cruddas

Senior Portfolio/ Investment Manager

Mark is a Senior Portfolio and Investment Manager. He joined the Business in 2012 and has 11 years' property experience, primarily in the retail sector and in his career has worked across a range of funds including retail, life and pension funds as well as distribution bonds with a specialism in retail assets.

+44 (0) 20 3727 8132 More about Mark
Ceri Griffiths

Ceri Griffiths

Manager, Investment Analytics

Ceri Griffiths is a Manager in Investment Analysis. Since joining the Business in 2005, he has provided a high standard of analysis that supports and influences investment and strategic activities for the fund.

+442037278149 More about Ceri
Adam Stone

Adam Stone

Senior Portfolio Manager

Adam is responsible for the management of approximately $750m of retail warehouse assets across various funds. He has been involved with several acquisitions and disposals, and has overseen key anchor lettings and developments for the UK Retail Warehouse Fund.

+442037278209 More about Adam
Andrew Rippingdale

Andrew Rippingale

Head of Finance

Andrew is Head of Finance for a number of property funds including the UK Shopping Centre Fund and UK Retail Warehouse Fund. He has more than 14 years commercial property experience. Andrew is responsible for the financial management and control of a number of real estate funds as well as being responsible for the accounting for several joint venture entities.

+442037278197 More about Andrew
Camilla Bergesen

Camilla Bergesen

Client Services Manager

Camilla is responsible for investor communications, client investor briefings and reporting across a number of funds and mandates.

+442037278431 More about Camilla