Columbia Threadneedle Real Estate, the real estate investment and asset management specialist of Columbia Threadneedle Investments, has acquired Phase 2 and 3 of Merry Hill Retail Park in Brierley Hill and Phoenix Retail Park in Corby on behalf of separate client funds for undisclosed sums.
These recent acquisitions follow the purchase of Parkgate shopping park in Yorkshire earlier this year.
Phases 2 and 3 of Merry Hill Retail Park comprise a combined circa 197,000 ft2 of retail warehouse and restaurant space on a site that extends to almost 15 acres with 600 free parking spaces. Anchor tenants include The Range, Currys, Wren Kitchens, DFS and Pets at Home trading from a range of retail formats from 1,900 ft2 to circa 52,000 ft2.
Merry Hill delivers close to half a million ft2 of food, convenience and homeware retailing and is complemented by the significant fashion and leisure provision in the adjacent 1,400,000 ft2 Merry Hill shopping centre. The combined retail critical mass is a major draw across the West Midlands as a whole.
Phoenix retail park is the dominant retail park in Corby, offering 118,200 ft2 of retail warehouse accommodation with anchor tenants including M&S Foodhall, Matalan, The Range, Currys, Next and The Food Warehouse. Its occupier mix is complementary to the demographics of the local catchment with a focus on food, discount and convenience-led retailing.
Tom Elviss, fund manager at Columbia Threadneedle Real Estate commented: 'The simultaneous acquisition of both Phases 2 and 3 at Merry Hill Retail Park from two separate vendors constitutes a majority holding at one of the UK’s dominant retail warehouse clusters in the West Midlands. This presents a significant opportunity to maximise the assets’ potential under single ownership.'
He added: 'Phoenix Retail Park is set to benefit from Corby’s sizeable residential development pipeline, which brings with it a catchment growth proposition that will allow us to enhance the tenant mix further. At both locations, we intend to draw on our strong retailer relationships and scale in the retail warehouse market as we seek to proactively asset manage the holdings to deliver strong returns for our investors.'
For the Merry Hill transaction, Harvey Spack Field acted for the purchaser and Morgan Williams represented the vendors, while Savills advised the purchaser on the Phoenix Retail Park acquisition and Knight Frank represented the vendor.
