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Ashford Retail Park

TIAA Henderson Real Estate increases stake at Ashford Retail Park

TIAA Henderson Real Estate, on behalf of its c.£1.04bn UK Retail Warehouse Fund, has purchased an additional stake in Ashford Retail Park (Phase 2) for £20.9m, reflecting a net initial yield of 5.92%.

The holding was acquired from West Midlands Pension Fund, managed by CBRE Global Investors.  

The Fund already owns the adjoining Ashford Retail Park (Phase 1) which it purchased in 2011. This acquisition further enhances the Fund’s exposure to a strategic location in the south east. The Retail Park comprises 75,000 sq ft of floor space across five units let to Boots, PC World, Argos, TK Maxx and Dunelm. The Fund has also secured planning consent for a full refurbishment of the adjacent Retail Park.  

As a house, TIAA Henderson Real Estate continues to promote the retail warehouse market, as retailers focus on the convenience, destination and experience factors delivered through trading from prime out of town locations.

Morgan Williams acted on behalf of TIAA Henderson Real Estate. CBRE Global Investors represented WMPF.

Mark Cruddas, Senior Portfolio & Investment Manager, said “As part of our wider strategy and business plan, it has always been the Fund’s intention to acquire this additional phase of Ashford Retail Park. The acquisition widens the scope for asset management and value creation. It enhances the scheme’s appeal to consumers and influence within the local retail hierarchy.”  

Mike Daggett, West Midlands’ Fund Manager at CBRE Global Investors, said “This asset has performed well for WMPF and we have had a good relationship with TIAA Henderson, but for the Retail Park’s potential to be fully-achieved, we have always acknowledged that it needs to be under the control of a single party. The sale price reflects this and we will re-deploy the proceeds in new opportunities.”

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.

* All figures as at 31 December 2013.

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