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.”
Labour Party plans to renationalise core industries and require the largest listed companies to hand 10% of shares to employees would be a "double whammy" for pensions, business leaders have warned.
A handful of industry heavyweights have begun trialling a so-called 'mid-life MOT', with positive initial results reported by all those involved.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".