Standard Life Investments has bought Gallions Reach shopping park and an adjoining site in Beckton, east London, for £208m
As reported in Property Week (news 30.06.06) Standard Life is purchasing the 209,000 sq ft (19,416 sq m) scheme that sits next to a Tesco Extra store, from The Hercules Unit Trust and a consortium of private clients of Bank of Ireland Private Banking. Standard Life is paying £192m for the 100% stake and has also agreed to buy the adjoining phase two site for £16m. Phase two has planning permission for 58,500 sq ft (5434 sq m) of open A1 retail.
Standard Life is splitting its ownership of the park between three of its funds. Its UK Retail Park Trust will own 50% while the remaining 50% will be split between the Pooled Property Pension Fund and the Unit Linked Life Fund, taking 25% each.
The scheme is anchored by Next, Topshop, Topman, TK Maxx, Boots and Borders.
David Paine, investment director at Standard Life, said: ‘It is the first acquisition for our Retail Park Trust, now valued at over £1bn. The appeal of Gallions Reach for our Funds is that it is located in an improving area undergoing major transformation ahead of the 2012 Olympic Games.’
Savills acted on behalf of Hercules and Bank of Ireland. Edgerley Simpson Howe acted on behalf of Standard Life.