TIAA Henderson Real Estate has secured a six-year extension to its UK Retail Warehouse Fund.
The £1.1bn fund, which was due to expire at the end of this year, will now run until December 2021.
As well as extending the fund, TH Real Estate has made a number of changes, including the introduction of an Investor Advisory Committee and a rebasing of manager fees from a gross asset value basis to a net asset value basis.
In addition, the fund will now be able to raise additional equity – up to 10% per annum.
TH Real Estate fund manager Michael Neal said the team looked forward to continuing to generate above benchmark returns for investors.
The fund manager said the fund had delivered a five-year total return of 17.6% per annum to June 2014 against an estimated benchmark of 12.2%.
“We are delighted to have secured an extension for this fund, which we believe offers investors the optimum route into the strong returns available within this sector,” said Neal.
All 70 unit holders elected to continue the fund and several investors – CBRE Global Investment Partners, Schroder Property Investment Management and Legal & General Property – publicly expressed their support for the fund. For example, Alex Bignell, head of UK at CBRE Global Investment Partners, said: “We consider that the manager engaged effectively with investors and that all parties took a pragmatic approach to the key terms of the extension.”
The fund currently owns 16 assets across the UK. It recently acquired an additional stake in Ashford Retail Park and sold the Blackwater Shopping Park in Farnborough and has ongoing development work at a number of sites including Weavers Wharf in Kidderminster and Central Retail Park in Manchester.