Client: Henderson Global Investors, Stanley Green Retail Park, Cheadle
Background
Gerald Eve were initially offered by Henderson Global Investors the opportunity to purchase this 91,500 sq ft Open A1 retail park for a client, during a time when the owner was receiving various approaches from other parties. Following confirmation that our fund client was not interested in a purchase, Gerald Eve’s relationship with the owner was such that we managed to secure the instruction to act for Henderson, who had been unrepresented, to discreetly seek a buyer and optimise sale proceeds.
The Approach
Based on our extensive knowledge of events and transactions then taking place in the retail warehouse market, our advice was to allow Prudential the opportunity to work up an offer on an exclusive “off market” basis, rather than widen or openly market the property. By so doing, we felt that the Prudential would offer a premium price to reflect the complete exclusivity and confidentiality at a time when other investors were making tentative approaches to Henderson.
The Result
The approach paid dividends, as we elicited an offer from the Prudential for £47 million, reflecting a 5.3% net initial yield for a park with 40% of the income secured on B&Q with capped uplifts. The transaction completed upon the terms agreed, allowing the vendor, Henderson’s flagship European Fund Herald, to increase their exposure to Western European markets in line with strategy.
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