UK - Two of Britain's largest pension schemes have acquired a 99% shareholding in a limited partnership which owns three factory outlets.
Hermes Property Asset Management has acquired Freeport Limited Partnership – the owner of three factory outlet centres situated in Braintree, Castleford and Fleetwood – for £245.5m on behalf of the £15.6bn Royal Mail Pension Plan and the £26.6bn BT Pension Scheme.
Hermes has also agreed to purchase the Freeport outlet centre in Talke, on the two schemes’ behalf.
Day-to-day asset management of the portfolio will be undertaken by specialist outlet manager REALM. The transaction is made up of £198m up front, plus a further conditional tranche of £47.5m, subject to securing consent for additional retail space over a seven-year period.
Hermes head of property Rupert Clarke said: “This is a rare opportunity to acquire a portfolio of well positioned factory outlet centres with good growth potential to add critical mass to our existing portfolio.
“Given the turnover-driven nature of rental income there are significant portfolio advantages in having exposure and control over nine outlet centres in diversified locations.”
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