Prupim acquires UK retail park from Henderson at 5.3% yield

Prudential Property Investment Managers (Prupim) has exchanged contracts to acquire the Stanley Green Retail Park in Wilmslow, Manchester for £47 mln (EUR 52 mln). The investment volume reflects a net initial yield of 5.3%, the lowest achieved for a retail park in the current market cycle.

The asset was sold by Herald Guernsey Investment, a subsidiary of Henderson Global Investors' EUR 900 mln pan-European retail property fund.

Stanley Green Retail Park comprises 8,450 m² of retail space and is fully let to a mix of national and international retail brands, including TK Maxx, Next, B&Q, Halfords and Comet, with long average lease lengths.

Herald's primary focus is on acquiring prime retail assets across France, Germany and Italy. Following this transaction and the recent acquisition of Centre Sud Shopping Centre in Le Mans, France, the fund has around EUR 75 mln of equity available to take advantage of current and future opportunities.

Commenting on the transaction, David Turner, Herald's fund manager, said: 'Our strategy for the fund in 2010 is to increase our exposure to core Western European markets, including France, Germany and Italy where forecast returns remain the most attractive for our investors. Our primary focus is to hold assets for long term income, however, this opportunistic sale by Herald Guernsey Investment at a market defining yield provides us with additional capital to deploy into the fund's core markets and take advantage of current market conditions.'

Herald Guernsey Investment was represented by Gerald Eve and K&L Gates. Prupim was represented by King Sturge, Tudor Toone and CMS Cameron McKenna.