Henderson Global Investors increases Birmingham Fort stake (UK)

Henderson Global Investors has acquired a further 12.5% stake in the 27,870-m² Birmingham Fort Shopping Park increasing its interest in this asset to 50%.

Birmingham Fort

Built in 1996, Birmingham Fort comprises approx. 27,870 m² of retail floor space.

Henderson, on behalf of its c. £1.1 billion UK Retail Warehouse Fund, has acquired the additional interest from Clerical Medical Managed Funds Ltd, St James's Place UK plc and Clerical Medical Investment Group Limited for £26.25 million (approx. €31.1 million) showing a net initial yield after expiry of rent frees of approximately 5.6%. The acquisition rounds off a very busy year of capital recycling for the Henderson Retail Warehouse Fund having transacted on sales and purchases of over £220 million.

Michael Neal, Fund Manager of the Henderson UK Retail Warehouse Fund at Henderson, said: "Birmingham Fort is one of the UK's leading fashion parks and a core asset for the Retail Warehouse Fund that has performed well in 2010. Recent lettings to Republic, Foot Asylum, Frankie and Bennies and Game, together with lease re-gears concluded with Next and River Island show the strength of the trading location. We are delighted to have been able to increase our exposure to this asset and to a segment of the market that is forecast to out-perform as more and more retailers see the benefits of trading from prime shopping parks.

"2010 has been an excellent year for the Retail Warehouse Fund having delivered total returns to its unit holders in excess of 20%, whilst also building on a pipeline of asset management opportunities that will enhance fund returns going forward."

Birmingham Fort is located off Junction 5 of the M6 to the North of Birmingham. Built in 1996 and comprising approx. 27,870 m² of retail floor space, it provides for 35 units anchored by M&S, Boots, BHS and Arcadia with 1,800 free car parking spaces.

Morgan Williams and DTZ acted for Henderson and CBRE acted for the vendor.

Source: Henderson Global Investors

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