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Kidderminster

Henderson UK Retail Warehouse Fund acquires Kidderminster Matalan unit in exchange for new equity

Henderson Global Investors’ c.£12.5 billion Property Business has acquired a retail unit in Kidderminster for £4.36 million which equates to a net initial yield of c.7.1%.

Henderson Global Investors’ c.£12.5 billion Property Business has acquired a retail unit in Kidderminster for £4.36 million which equates to a net initial yield of c.7.1%.

The unit, which is let to Matalan until 2020, was acquired on behalf of Henderson’s c.£1.1 billion UK Retail Warehouse Fund, and is located adjacent to Weavers Wharf Shopping Park, which is also owned by the Fund.

The acquisition was funded through an issue of new units in the Fund, demonstrating the demand for good quality retail warehouse exposure from institutional investors.

Michael Neal, fund manager for the Henderson UK Retail Warehouse Fund, said: “The Fund has delivered strong performance in recent years with a total return of 10.7% per annum over a rolling three year period, outperforming the retail warehouse benchmark and its peers. The acquisition is entirely consistent with the Fund’s strategy to extend its ownership at Kidderminster where significant opportunities exist to add value by pro-active management. The purchase, being completed in exchange for new equity is earnings positive for all unit holders and demonstrates both investor demand and liquidity in the Fund.”

The Fund has owned Weavers Wharf Shopping Park since 2006. The asset has performed well with strong footfall and a high level of demand from retailers.

Knight Frank acted on behalf of Henderson. Deloitte Real Estate acted on behalf of the vendor - The Christ’s Hospital Foundation.

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