Hercules Unit Trust ('HUT'), the specialist retail warehouse fund advised by The British Land Company PLC and managed by Schroders, has completed the sale of its Borehamwood Shopping Park in Borehamwood, United Kingdom. A Fund advised by LaSalle Investment Management has purchased the shopping park for a total consideration of £80.6 million.
The Borehamwood Shopping Park comprises 211,800 ft² of retail space over 23 units, located adjacent to Borehamwood High Street. The scheme was originally acquired by HUT in July 2000 for £28.6 million as part of a portfolio from Great Portland Estates. HUT has subsequently undertaken an extensive program of active asset management at the scheme including the reconfiguration and construction of new units.
Only two of the original tenant line up remain, following the managed departure of Focus, Gala, Kingsway, Allied and Tempo amongst others. New retailers were then introduced to the scheme such as Next, Boots, Sports World, WH Smith and Outfit, along with a letting to and subsequent up-sizing of Marks & Spencer. Recent additions to the shopping park including New Look, Laura Ashley, Clarks and Starbucks have taken the rent on the park to £32.75 per ft² for a standard 10,000 ft² unit.
The sale has produced an ungeared IRR of 12.41% p.a. IPD Retail Warehouse Index over the same eight year period returned 8.20% p.a.
HUT acted on its’ own behalf. Wilkinson Williams acted for the purchaser.