Pillar confirmed today that it has bought Fosse Park retail park near Leicester in conjunction with Canadian fund SITQ – its partner in Pillarcaisse – and Schroders for £205.5m.
The company also announced that the three partners have set up an off-shore property unit trust to fund the Fosse Park acquisition and buy more out-of-town retail investments.
The Jersey-based vehicle, known as the Retail Unit Trust, has a further £300m to spend. Each of the initial investors holds a third of the units. Schroder Properties’ managing director, William Hill, said that new investors could be introduced at a later stage.
The trust has bought the main Fosse Park investment from SPP for £145.5m and Fosse Park South, which Pillar already owned, for £60m. The two total 37,687 sq m (405,672 sq ft), making it the largest retail park in the country.
Pillar chairman Raymond Mould said: “With the scope to invest a further £300m, the trust provides Pillar with the opportunity for additional exposure to substantial high growth out of town retail investment opportunities which may arise.”
Last month, Pillarcaisse announced it was putting its seven UK shopping centres on the market and said it wanted to buy larger schemes. The joint venture has announced a spate of lettings at the centres which are currently up for sale. They include lettings to Monsoon and Clinton Cards at the Bloomfield Centre in Bangor, Northern Ireland and to Thorntorns at the Four Seasons Shopping Centre in Mansfield.
EGi News 04/08/98
