Chinese state-owned Gingko Tree is expanding its presence in the UK out-of-town retail sector by buying a 25% stake in Monks Cross shopping park for £50m.
It has purchased its share in the York asset from BA Pension Fund, at a price reflecting a 6% yield, and will become an equal shareholder alongside USS, Schroders and Legal & General Property.
The deal is a significant departure for Gingko, which has traditionally focused on much larger deals for more high-profile assets.
It made its first move into UK retail parks last year, when it teamed up in a 50:50 joint venture with The Crown Estate to buy Fosse Park in Leicester for £345.5m. This followed swiftly on the heels of its jv with Axa Real Estate to buy a 50% stake in Cabot Circus, the 1.4m sq ft Bristol mall, for £270m.
Sources said Gingko was likely to increase its share of the 270,000 sq ft Monks Cross in the future.
Patrick Knapman, head of out-of-town retail at Cushman & Wakefield, said: ‘It is encouraging to see overseas investors increasing their exposure to the sector – we believe this is a trend that should continue over the medium term.”
BNP Paribas Real Estate advised Gingko Tree.
