Henderson to proceed with largest UK property deal of 2008

London-headquartered Henderson Global Investors (HGI) has been given the go-ahead to proceed with the purchase of a portfolio of designer factory outlets for about £ 380mln (EUR 475mln) in what would be the largest UK property deal of the year, the Financial Times reported.

According to the report, Henderson is proceeding with due diligence on the purchase of the flagship Cheshire Oaks centre, the Bridgend Designer Outlet in Wales and the Swindon Designer Outlet in Wiltshire. The properties are expected to form the basis of a new retail property fund for Henderson. Other parties that bid for the deal included Moorfield, and Chester Properties in a joint venture with Apollo.

The fund manager is to buy the properties from limited partnerships comprising a number of UK institutions, including the BP pension fund, AXA and Morley Fund Management, as well as US real estate investor Liquid Realty. The vehicles that own the centres are closing in the next 18 months, prompting the sale. CB Richard Ellis is advising. All parties declined to comment.