British Land has completed the sale of its 26.1% interest in the Hercules Income Fund to clients of LaSalle Investment Management for £19 mln (EUR 24.1 mln). The transaction represents a total property value of £72 mln (EUR 91.5 mln) and a net initial yield of 6.5%, which is slightly above the March 2012 valuation. LaSalle is now the sole owner of HIF.
British Land has completed the sale of its 26.1% interest in the Hercules Income Fund to clients of LaSalle Investment Management for £19 mln (EUR 24.1 mln). The transaction represents a total property value of £72 mln (EUR 91.5 mln) and a net initial yield of 6.5%, which is slightly above the March 2012 valuation. LaSalle is now the sole owner of HIF.
The 27,300 m2 portfolio comprises seven retail warehouse properties (in Barnstaple, Evesham, Hove, Uddingston in Glasgow, Newton Abbot, Plymouth and Weymouth) and generates total contracted rent of £4.7 mln per annum.
Charles Maudsley, Head of Retail for British Land, said: 'This sale has allowed us to realise the benefits of our asset management at just above book value, as well as continuing to recycle British Land’s capital in line with our overall approach.'
Chris Fry, Fund Manager at LaSalle, said: 'The properties in the Hercules Income Fund represent well-let retail warehouse parks, the majority of which benefit from non-food open A1 consent and are located in the south of England. Acquiring the other unit holders’ interests was an efficient way for our clients to increase exposure to the retail warehouse sector which has seen a shortage of high quality assets available in the market in 2012.'
British Land was represented by Wilkinson Williams and LaSalle was advised by Savills and DAC Beachcroft.
