US investor buys into UK shopping parades
Published: 29 November, 2010
US-based Pramerica Real Estate Investors has formed a joint venture with the Local Shopping REIT to invest in retail parades and precincts throughout the UK
Pramerica is committing to up to £30m of equity and LSR £7.7m which, with gearing, will provide a total of about £100m to invest in the UK neighbourhood/convenience retail sector, with a typical lot size ranging from £1.25m to £7m.
The JV will focus primarily on retail parades and precincts located in suburban and neighbourhood locations where the properties are well placed to support the convenience and “top up” shopping requirements of the surrounding population.
The venture has already agreed to purchase a property in Stanwell, Middlesex let to Sainsbury’s and local tenants for £1.6m.
Mike Riley, LSR’s Joint chief executive officer, said: “Teaming up with Pramerica gives us the chance to capitalise on the significant value that we see in the convenience retail sector. The formation of this JV demonstrates that Pramerica has also recognised the opportunity in this market where a clear platform can be created and expertly managed.”
