Threadneedle is under offer to buy the mixed-use Principal Trust portfolio from Westbrook Partners for around £135m – a 7.2% yield.
The 12-strong portfolio includes three shopping centres, two multi-let industrial estates and seven offices, all of which are located in London and the South East.
The retail assets, which represent just under half of the portfolio by value, include the Baytree centre in Brentwood, Essex, Heathway in Dagenham and George Yard in Braintree, Essex (pictured).
The industrial estates are Larkfield Mill in Aylesford, Kent, and Bakers Court in Basildon, Essex.
The portfolio as a whole has a weighted unexpired lease term of 5.5 years and 3.75 years to break. It commands a passing rent of £10.1m pa.
Threadneedle secured the portfolio ahead of a pack of bidders including US investor Harbert Asset Management.
The depth of demand for the deal reflects the weight of money currently pouring in to real estate funds.
Managers have become increasingly focused on value-add opportunities as a means of achieving better returns for their investors.
The relatively short leases and vacancies within the portfolio provide plenty of opportunity, according to a source.
Westbrook is selling the assets – all acquired in the past six years – as it winds up the global funds which held them.
JLL and Corex advised Westbrook; Threadneedle was not represented.
