The University of Oxford’s endowment fund has bought a retail park for around £34m.
The fund has acquired the 81,963 sq ft Goldstone Retail Park in Hove, East Sussex, from Aberdeen Standard Fund Managers.
The deal represented a 5.1% yield, excluding any potential upcoming letting deals. The park contains a vacant 26,142 sq ft Toys R Us store, which sources indicated could soon be let to a discount grocer, as well as 305 car-parking spaces.
Key tenants at the park include TK Maxx, DFS, Pets at Home, Harveys Furniture, Burger King and Nando’s. It has a WAULT of five years.
The park was initially marketed as a redevelopment opportunity, with existing planning consent permitting open A1 non-food categories.
Indicative research had identified potential for around 800 new units, with scope for taller landmark elements.
Various potential residential uses were underlined, including student accommodation, private for-sale, build-to-rent and care homes. However, it is not clear whether the university fund has such plans for the property, or whether its strategy could involve student housing.
Marketing materials highlighted that all existing tenants at the park were keen to maintain a long-term commitment.
The Oxford Endowment Fund holds assets worth around £3.4bn in total, according to its latest report for the year ending December 2018. Its investor pool is comprised of 37 independent UK charities.
The vehicle is managed by university subsidiary OU Endowment Management. The majority of its property portfolio, which amounted to 7.9% of its overall asset allocation, is managed directly.
Cushman & Wakefield advised the sellers; Joiner Cummings acted for the buyers.
All parties declined to comment.
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