by Jane Roberts
A £200m retail parks limited partnership – the first in the UK – is about to be launched.
The partnership is being set up by Swedish pension fund SPP, Norwich Union and Hermes and is structured around Fosse Park in Leicester, arguably the UK’s most successful retail park.
Philip Ingman, managing director of Celexa which runs the SPP property fund, said he hoped the structure would be finalised next month when it is due to be considered by the NU and Hermes boards.
Ingman said the 26,012m2 (280,000 sq ft) Fosse Park was now worth around £100m and would represent some 50% of the combined value of the property put into the partnership. NU is contributing Crown Point retail park in Leeds, which is worth around £50m; Hermes is putting in Tottenham Hale retail park in north London.
Norwich Union’s property investment director, Ian Mashiter, said: “From our point of view this is an interesting opportunity. It gives us exposure to Fosse Park, which we think is a great asset; allows some diversification of our portfolio; and gives us the ability to invest some cash.”
SPP wants to reduce its holding in Fosse Park because the scheme represents a high proportion – 20% – of its £500m UK portfolio. The three funds have been discussing a deal since at least May 1997 (News, May 31).
Others, including Chartwell Land, have previously failed to get an indirect retail park vehicle off the ground. It is thought that the Fosse Park vehicle could be expanded to include other properties and investors in the future.
