Henderson Global Investors has launched a UK Shop Fund. It is the latest in the suite of Henderson’s sector and market specialist funds which includes the UK Retail Warehouse Fund, the Central London Office Fund, the European Outlet Mall Fund and the KAG spezialfonds.
The Fund invests principally in city centre shops that have asset management opportunities. It has an initial portfolio of 13 assets with a combined value in excess of £100 million producing a net initial yield over 6 % (as at Sept 03). The target fund size is in excess of £250 million.
Key investors include Hermes clients´ Britel and Royal Mail Pension Plan, who have between them invested £51million at launch, along with Pearl Long Term Fund, National Provident Life and London Life.
Sarah Slater, Fund Manager of the new fund at Henderson said, “This fund offers investors the opportunity to invest in properties where above-average rental growth may be anticipated while at the same time preserving a market level of income from the portfolio. We will be seeking to maximise returns through active asset management.” Neil Varnham, Director of Retail for Europe at Henderson said, “The creation of this specialist retail fund provides an excellent opportunity for both our existing and new clients to access strong returns in the shop fund sector through a Jersey unitised vehicle. We have constructed an excellent team to deliver performance and will offer a matched bargain facility to create liquidity similar to our UK Retail Warehouse Fund.”
Commenting on the investment by Hermes, Richard Low of Hermes Retail said, “Our investment in this fund gives us exposure to a sector where we are currently underweight and expect to receive strong returns.”
The Fund aims to provide a total return in excess of the Standard Retail Component of the IPD annual index. It has the ability to gear to a maximum of 50% of the gross asset value. It is a closed-ended Jersey Property Unit Trust with an end date of December 2009.