In the biggest investment deal of the year so far Henderson Global Investors has paid £365m for three outlet malls: Cheshire Oaks near Liverpool, the Bridgend Designer Outlet in Wales and the Swindon Designer Outlet in Wiltshire. The deal shows an initial yield of just over 7 per cent.
Henderson will use the properties to kickstart a new UK retail property fund to be called the UK Outlet Mall Fund, and it has raised £181m in equity to finance the deal from German bank Bayerische Landesbank.
The three properties were acquired from a consortium of investors including the BP pension fund, AXA, Morley Fund Management and US real estate investor Liquid Realty. All three have been operated by McArthurGlen, and the company has been retained by the new owner to carry on as operator.
James Darkins, managing director of Henderson Property, said: "Henderson has been a long-term investor in UK and European retail assets. We are a firm believer that attractive long-term returns are available from prime retail assets. Our experience with our European Outlet Mall Fund, together with our research of historical performance in the US and Europe, clearly demonstrate that outlet malls are consistent performers, and still able to provide growth in turnover during times of economic slowdown."
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