Standard Life Investments has signed an agreement with developer Helical Poland to fund a EUR 70mln retail park near Opole in Poland. Secured on behalf of Standard Life's European Property Growth Fund (EPGF), the 36,000 m[sup]2[/sup] Tarawa Retail Park development will comprise a hypermarket, a DIY store, 10 retail warehouse units and a retail gallery and will be anchored by French retailer Carrefour. Construction is set to begin in October 2008 with the project expected to be completed in September 2009.
Standard Life Investments has signed an agreement with developer Helical Poland to fund a EUR 70mln retail park near Opole in Poland. Secured on behalf of Standard Life's European Property Growth Fund (EPGF), the 36,000 m2 Tarawa Retail Park development will comprise a hypermarket, a DIY store, 10 retail warehouse units and a retail gallery and will be anchored by French retailer Carrefour. Construction is set to begin in October 2008 with the project expected to be completed in September 2009.
EPGF fund manager Will Fulton said in a statement that the transaction would add exposure to a new product in one of the strongest sectors of the European economy. 'GDP growth in Poland last year was 6.5% and it is expected that consumer spending will increase by more than 5% in 2008. Such growth contributes to strong demand for retail accommodation, especially in such a prime location.'
Standard Life said it has also acquired a EUR 22mln development in Rennes, France from developer Kermarrec Promotion. Set to be completed in the third quarter of 2009, it will consist of a new 10,291 m2 office building with 290 car spaces.
With EPGF's last tranche of equity now fully committed, Standard Life said the fund consists of 32 properties in 10 countries across Europe. The value of the fund at 31 December 2007 was EUR 820mln. Standard Life Investments said it is now in the process of raising a new, third tranche of equity for the fund. In the three years ending 31 December 2007, the fund has delivered an annualised total return net of all fees of 18.5%. Since inception in late 2001 and through to 31 December 2007, the fund posted an annualised return of 11.7% net of all fees.