TIAA Henderson Real Estate (TH Real Estate) has secured a six-year extension for its approx. £1.1billion (€1.2 billion) flagship UK Retail Warehouse Fund. The original Fund, which was due to expire in December 2015, will now run until December 2021. All 70 unit holders, comprising UK and European institutions, elected to continue the Fund.
In addition to the six-year extension, the Fund has been restructured to accommodate a number of changes. These include the introduction of an Investor Advisory Committee and changes to the basis of the Manager’s fees from a gross asset value to net asset value basis. The restructure also introduces the ability for the Fund to raise additional equity - up to 10% per annum - in addition to an ‘in-specie’ allowance, which enables the Fund to issue new units in exchange for retail assets.
A new redemption window was offered to investors to redeem up to June 2015. That window has now closed without any redemption notices being received.
The prime retail warehouse fund invests in retail warehouse parks across the UK, with a portfolio comprising 16 assets with a fund value of approx.£1.1billion (€1.2 billion).
Recent activity includes the acquisition of an additional stake in Ashford Retail Park (Phase 2), the sale of Blackwater Shopping Park in Farnborough, and ongoing development activity across a number of assets, including Weavers Wharf in Kidderminster and Central Retail Park in Manchester.
Michael Neal, Fund Manager at TH Real Estate, 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 approach to asset management of the portfolio.”
Source: TIAA Henderson