Henderson Global Investors, on behalf of its ca £1.07 billion UK Retail Warehouse Fund, has sold Pentavia Retail Park for £27.8 million (approx. €33 million), reflecting a net initial yield of 5.97%.
The park, totalling 92,900 ft² (approx. 8,630 m²), was let to Homebase, Argos and TGI Friday with an average unexpired term of one year and seven months.
Michael Neal, fund manager for the Henderson UK Retail Warehouse Fund, commented: “This sale was firmly in line with the Fund’s strategic objectives. Over the past five years the Fund has transacted on over 20 asset purchases and sales worth over £650 million. This transaction re-affirms the fact that liquidity in the retail warehouse market and within the Fund remains strong. By selling a short income asset and using the proceeds to de-leverage and recycle into the existing portfolio, the Fund enters the latter part of 2013 in great shape both in terms of its financial standing and its prospects for future performance.
“The Fund has delivered strong returns in recent years outperforming the retail warehouse benchmark and remains the best performing specialist retail warehouse fund as measured by the AREF IPD UK Quarterly Property Fund index for the year to date, over one, three and 10 year periods”
As a house, Henderson remains committed to the retail warehouse segment of the market, as retailers focus on the convenience, destination and experience factors delivered through trading from prime out of town locations.
Harvey Spack Field represented the buyer.