Standard Life Investments’ £800m UK Retail Park Trust is preparing to sell almost a quarter of its assets after 45% of its external investors opted to exit the vehicle rather than roll over for a further 10 years.
The decision by investors including Aviva Investors Multi Manager to leave the vehicle has prompted the fund to hang a for sale sign over two significant assets, which are expected to fetch £180m.
These include the 90,221 sq ft Brookfield retail park in Cheshunt, Hertfordshire, and the 139,858 sq ft Central Six in Coventry, Warwickshire (pictured).
Both parks will be marketed by Savills, Brookfield with a £110m price tag – reflecting a 5.25% yield – and Central Six for £70m – a 5.65% yield.
The UK Retail Park Trust is a closed-ended fund with 60 investors, including multi-managers, all of which are from the UK and most of which are pension funds.
Standard Life is the largest investor in the vehicle, with a circa 45% stake, of which its Life Fund holds the majority.
It secured a vote to extend the life of the ungeared fund by 10 years last year, at which point 24% of the funds’ investors elected to leave.
The move meant Standard Life was faced with either having to bring in new investors or to sell down assets in order to return money over a two-year period.
The Retail Park Trust owns nine UK assets, including the £120m Ladymead retail park in Guildford, Surrey, and the £130m Interchange park in Bedford.
It returned 4.8% in 2013, falling short of the IPD/AREF benchmark of 9% for all funds during the period.
