Hines, the global real assets investment manager, has bought three retail parks totalling 438,000 square feet in Greater London, Manchester and Edinburgh.
The fully leased retail parks have been bought on behalf of the Hines European Core Fund, led by fund manager Simone Pozzato alongside Hines’ global investment management platform.
HCEF has bought Nugent Shopping Park, an 139,000-square-foot asset in Orpington, anchored by a full-line Marks & Spencer store with a grocery food hall and occupied by national retailers. The park was sold by British Land. The price paid has not been disclosed.
It has also bought Altrincham Retail Park, in Manchester, a 228,000-square-foot retail park occupied by retailers including Lidl, Boots, B&Q, Currys, B&M, Pets at Home and TK Maxx. And it has bought Straiton Retail Park in Edinburgh, a 71,000-square-foot retail park anchored by Home Bargains, The Food Warehouse and Dunelm. Hines bought Altrincham and Straiton for £88 million from Ares Management Corporation.
“We see UK retail parks as an increasingly compelling part of a diversified core portfolio,” said Alfonso Munk, global co-head of investment management at Hines in a statement. “Limited new supply, strong retailer demand, and attractive income characteristics create a combination that has been difficult to replicate elsewhere in the retail market. These acquisitions allow us to build meaningful exposure in three of the UK’s strongest metropolitan markets.”
“These acquisitions demonstrate the strength of our local sourcing capabilities and our focus on creating value through active management,” added Ross Blair, head of Western Europe at Hines. “Success comes down to picking the right assets and executing well. We believe these retail parks combine strong fundamentals with clear opportunities to create value over time.”
Hines will oversee asset management across the portfolio through its UK platform. It said it will focus on "tenant engagement, operational performance, and the capture of rental growth opportunities over the holding period".