Wednesday, April 19, 2017

News: Rotherham retail park sold in multimillion pound deal

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The Foundry Retail Park in Rotherham has been sold to Tristan Capital Partners, the pan-European real estate investment manager, as part of a £245m portfolio deal.

Formerly known as the Great Eastern Retail Park at Parkgate, the 170,748 sq ft retail development with 813 car parking spaces, is home to The Range, Harveys, DFS, Wren Kitchens and B&M.

The site was bought in 2012 by a specialist joint venture partnership of Brockton Capital and Pradera in a deal worth around £22.1m. The partnership was established to selectively acquire a portfolio of retail parks throughout the UK and jointly committed sufficient equity to enable a gross portfolio value of approximately £250m to be acquired.

The Brockton portfolio of nine well-located retail parks across the UK was bought for £245m on behalf of Curzon Capital Partners IV (CCP 4), a "core-plus" style investment fund - managed funds which join 75% of core assets such as buildings, with higher risk short term investments.

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Peter Mather, managing director of investments at Tristan Capital Partners, said: "We are seeing a big disconnect between the relatively strong occupational market and subdued real estate capital market for retail assets in the UK. This portfolio allows us to capitalise on this trend.

"While there are a number of planned asset management initiatives to add value, the long WALT [leases], affordable rents and strong covenant strength make this defensively positioned portfolio an ideal core-plus style investment."

CCP 4 has retained Savills Investment Management to continue managing the properties on its behalf. Advising CCP 4 on the purchase of the portfolio were Savills, Stephenson Harwood and Pricewaterhousecoopers.

Gowling WLG's real estate team advised the fund advised by Brockton Capital on the deal.

Sally Pinkerton, head of international real estate at Gowling WLG, said: "The deal is certainly significant as it's the first out-of-town retail park portfolio of this size and nature to come to market. We are delighted to have assisted Brockton Capital from acquisition through to disposal and ensure that their investors capitalised on the investment and hard work over the last five years."

The UBS Triton Property Fund, who bought the retail park at Parkgate in 2006, refurbished the properties in 2010.

Further refurbishment work has taken place and recent openings include Oak Furniture Land, JYSK and United Carpets. Plans have been approved for American coffee company and coffeehouse chain, Starbucks to open a purpose built outlet in the park. United Carpets expanded on the park, enabling co-operative company, AHF Furniture to move in.

3.2 acres on the site has potential for further retail and leisure development.

Tristan Capital Partners website

Images: GVA


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