Hammerson is the frontrunner to buy the out-of-town retail Junction Fund.
The UK REIT is tipped as the favourite to secure the fund with its bid of around £265m – a circa 7% yield.
However, talks are thought to be ongoing with a couple of other parties. Other bidders for the portfolio include Andrew Jones’ Metric Property Investments with Blackstone and Orion.
If Hammerson is successful, the Junction Fund would be its first major acquisition since it revealed plans in February to focus exclusively on the retail sector.
Yesterday, it confirmed it had invested a further £100m in the designer outlet sector through its holding in Value Retail.
The £287m Junction Fund, which is owned by Capital & Regional, Aviva Investors and Area Property Partners, was brought to the market in May.
The fund was formed in 2002 and is asset managed by Capital & Regional and fund managed by Area. It now comprises four retail parks and two developments totalling 1.4m sq ft.
Cushman & Wakefield, Wilkinson Williams and Morgan Stanley are advising on the sale.
annabel.dixon@estatesgazette.com
