Retail fund manager Capital & Regional emerged this week as the surprise purchaser of a national portfolio of trade parks.
In its first foray into the quasi-industrial market, C&R is poised to buy the portfolio from the T3 Fund for almost £20m above the asking price.
The fund whose biggest shareholders are AXA and clients of Knight Frank put the portfolio up for sale through Knight Frank for £78m, a 6.5% yield.
Ashtenne, which was purchased by Warner Estate and Anglo Irish Bank in May, holds 17% in T3.
C&R beat seven other bidders including Brixton and UK Land, paying around £96m, a 5% yield.
A source said: “C&R will be putting its retail warehousing expertise into these parks and introducing more retailers. It could make a lot of money if the rules are changed and trade parks become an official use class.”
At present, tenants can use only a small section of floorspace for retail sales. The rest must be used for warehousing.
C&R will also try to boost rents from £5 per sq ft to over £7 per sq ft. The portfolio is let to more than 200 tenants.
King Sturge acted for C&R; Knight Frank advised T3.
References: EGi News 31/10/05
