Henderson Global Investors has secured a seven year extension for its c. £650 million (approx. 825 million) flagship UK Shopping Centre Fund, giving it a further life of ten years. The Jersey-based property unit trust, which was established in July 2004, was originally due to terminate in 2014. The Fund Life will now run through until 2021, with a redemption window available in 2017.
The Fund invests a 50% share in Buchanan Galleries in Glasgow.
Henderson is now entering a process of capital raising for the Fund as it seeks c. £200 million (approx. 254 million) to meet redemptions, to fund redevelopments and to take advantage of opportunities to invest further into prime UK shopping centers.
The Fund invests in a number of prime assets, namely a 1/3 share in Birmingham's prestigious 'Bullring', a 50% share in Buchanan Galleries in Glasgow, a 50% share in Whitefriars in Canterbury and 100% ownership of St James Centre, Edinburgh.
The Fund has delivered a 5.0% total return over the last year, rising to 13.3% per annum over three years. It has consistently compared favorably against its competitors and has boasted outperformance against its objective at both the fund and property level. It has been the top performing Fund in its sector for the past three years.
Myles White, Fund Manager, commented: "We are delighted to have secured an extension for this Fund which we believe offers investors the optimum route into the strong returns available within this sector, complemented by our expertise and intensive asset management experience.
"The Fund's performance has been representative of the prime nature of the Fund's ownerships and we expect that strong performance to continue, supported by a solid income return. We are confident that the extension to the Fund's life presents us with an opportunity to further drive returns for existing investors, while also opening an opportunity for any new investors to enter the Fund.
"We are confident that the right asset management initiatives are being employed across the portfolio in order to meet both consumer and retailer demand. Meanwhile, we are committed to delivering our development proposals at Buchanan Galleries in Glasgow, with our partners Land Securities, and at St James Quarter in Edinburgh, which have the ability to further significantly enhance returns throughout the remainder of the Fund's life."