Monday, September 7, 2015

News: Parkgate Shopping sold in £175m deal

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Parkgate Shopping Park has changed hands in one of Rotherham's biggest ever property deals.

In a transaction worth around £175m, BMO Real Estate Partners (BMO) has acquired the park, which is one of the largest retail parks in the UK and home to over 40 shops, from the Hercules Unit Trust (HUT), which is advised by British Land and managed by Schroders.

Attracting over nine million visitors a year, the 575,000 sq ft retail destination was ranked as the fifth best retail park in the UK by retail consultancy, Javelin Group in its latest VENUESCORE report which assesses the UK's leading 3,000+ commercial venues.

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HUT acquired Parkgate in a £260m deal from developers, the Stadium Group in 2005, representing an equivalent yield of 5.25%. As part of the same transaction, Stadium acquired Newport Retail Park from Hercules for £60m.

In 2014, British Land agreed to purchase £41m of additional units in Hercules, taking British Land's share to 54.2%, which meant that the trust would become a subsidiary of British Land.

Valued at over £100m to the trust via a subsidiary, the Rotherham Unit Trust, the Rotherham retail park was reported to have been put up for sale as part of a wider HUT portfolio earlier this year.

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Previously known as F&C REIT, BMO Real Estate Partners has a range of real estate fund management services and network of offices across the UK, Germany, France and Ireland. The business manages a global portfolio worth €6.9bn on behalf of a wide range of individuals, professional investors, property trusts and institutional clients. It owns a number of out-of-town retail parks in the UK including StarCity in Birmingham and Sears Retail Park, Solihull.

Zvi Noé, director of investments at BMO Real Estate Partners, said: "We are delighted with this acquisition of one of the country’s top shopping parks. We look forward to working with our customers and the local business community to ensure Parkgate continues to move forwards under our stewardship in order to provide the best possible shopping experience for customers."

In 1987, Parkgate Retail World opened as part of the regeneration of large areas of reclaimed land formerly occupied by the Park Gate Iron and Steel Co. In recent years it has hovered around 100% occupancy with anchor tenants of Marks & Spencer, Next and Boots. Recent lettings include fashion retailer, H&M.

Parkgate Shopping website
BMO Real Estate Partners website
British Land website

Images: Parkgate Shopping

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