An opportunity fund advised by Tristan Capital Partners, the pan-European real estate investment manager, has purchased a retail park in northeast England and another 217 km north of London from Hercules Unit Trust for approx. €60.5 mln (£45 mln).
European Property Investors Special Opportunities 3 L.P. (EPISO 3) has acquired the Hylton Riverside Retail Park near Sunderland and the Hatters Way Retail Park on the outskirts of Luton. Retail specialists Pradera will manage both assets.
The deal builds on the longstanding joint venture partnership between Tristan and Pradera to acquire and manage retail assets in areas identified for their return potential. The Tristan portfolio managed by Pradera in the UK currently consists of 11 retail warehouse parks including these two latest acquisitions.
Peter Mather, Managing Director of Investments at Tristan Capital, said:
“These freehold assets provide modern retail warehousing accommodation that is located in established towns with large shopping catchments. Both parks provide secure and diverse income streams, with opportunities to improve this through leasing up a small element of vacancy, regearing and relocated existing tenants, and developing out a consented drive-thru restaurant and some new pods.”
Neil Varnham, Managing Director, Pradera, said:
“The popularity of retail parks has gone from strength to strength over the years as consumer habits change. Luton is undergoing change and establishing itself as a critical mass for retail warehouse and leisure. Sunderland, again, is in the process of reinvention; which has resulted in a strong employment market with millions of pounds being poured into the area boosting the local economy. These new assets are key strategic parks for us in strong locations, which will prove to add significant value to Tristan’s existing portfolio.”
The two assets comprise a total of 18,794 m² (202,300 ft²) of lettable space that consists of 23 units and provide parking for 954 vehicles. DFS Furniture, Aldi, Matalan, Argos extra, Pets at Home and Costa are amongst the strong line-up of tenants on the parks, while about 10% of the lettable space is currently vacant.
Source: Tristan Capital Partners
