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TIAA Henderson Real Estate sells Blackwater Shopping Park in Farnborough

Blackwater Shopping Park

TIAA Henderson Real Estate (TH Real Estate) has sold Blackwater Shopping Park in Farnborough to Lothbury Property Trust for c.£78m, representing a net initial yield of 4.25%.

TIAA Henderson Real Estate (TH Real Estate) has sold Blackwater Shopping Park in Farnborough to Lothbury Property Trust for c.£78m, representing a net initial yield of 4.25%.

The asset was sold on behalf of TH Real Estate’s £1.1bn UK Retail Warehouse Fund.

The Fund purchased Blackwater Shopping Park in 2004. During the Fund’s 10 year ownership, the Manager has undertaken letting, development and refurbishment initiatives to re-position the asset from a predominantly bulky scheme to a prime south east shopping park, growing rents significantly along the way.

The c.10,000 sq m retail park, which benefits from an open A1 non-food planning consent, is fully occupied by strong tenants including Next, TK Maxx, Boots, Outfit, Mamas and Papas, Currys, Mcdonalds and Costa.  

Michael Neal, Fund Manager at TH Real Estate, commented: “Through asset recycling and active management, the Fund continues to deliver significant out-performance for its investors with a five year total return of 17.6% per annum to June 2014 against an estimated benchmark of 12.6%.  

“The disposal of Blackwater is fully aligned with the Fund’s strategic objectives and the price achieved highlights the demand for well positioned Prime Retail Warehousing, which is a sector that continues to thrive.”

Morgan Williams advised TH Real Estate. Lothbury Property Trust was advised by Cushman & Wakefield.

Disclaimer Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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