M&G Real Estate has acquired Selly Oak Retail Park, a major regeneration project in south-west Birmingham. On completion, the €107.4m (£94m) scheme will provide 190,000 ft² of high-quality retail space in the affluent suburb of Selly Oak. The acquisition was made on behalf of M&G Real Estate’s Capital Solutions business under the leadership of Martin Towns.
The deal marks the second partnership with West Yorkshire Pension Fund in under a year following a three-party joint venture in July 2017 alongside an Asian Investor to acquire a €120m (£105m) central Manchester office building.
This major investment project will deliver a valuable economic boost for the South Birmingham area offering quality retail, improved highways and canal side improvements. The park is almost completely pre-let to national retailers such as Sainsbury’s, Marks & Spencer, JD Sports, Superdrug and Nandos.
Louise Warden, Property Investment Manager of West Yorkshire Pension Fund, says: “This high-quality asset provides a secure income stream for our members in line with the pension funds’ long-term objectives and has the added advantage of providing socio-economic benefits to Birmingham and the UK. We are delighted to have again partnered with the experienced team at M&G Real Estate on this transaction.”
Martin Towns, Head of Capital Solutions, M&G Real Estate, comments: “There is an increasing trend in global real estate for large institutional and sovereign wealth investors to partner with established fund management companies through joint ventures and separate accounts. We believe in investing time to truly understand our clients’ unique preferences and requirements, using our skills and experience to create bespoke strategies and investment opportunities that work for them.”
Lucy Williams, Business Development Director at M&G Real Estate, adds: "We are very pleased to cement our relationship further with West Yorkshire Local Government Pension Fund, helping them to meet their long-term objectives through providing access to high-quality UK real estate, delivering sustainable and growing income streams.”