East London retail park snapped up in fledgling property fund’s third deal

A recently-launched property fund has acquired a retail park in East London in its third investment.

DTZ Investors acquired Goodmayes Retail Park in Chadwell Heath from Landsec on behalf of LGPS Central’s UK Direct Property Fund, which was launched in late 2023.

The 100,000 sq ft+ scheme is let to a range of retailers including Wickes, Currys, Carpetright, The Gym, Nandos, Costa, and Masala Bazaar. The park is located in an area that is expected to see new investment in homes, jobs, and social infrastructure owing to its close proximity to the new Crossrail stations at Goodmayes and Chadwell Heath.

The UK Direct Property Fund is a sub-fund of the LGPS Central Property ACS, developed in collaboration with LGPS Central’s Partner Funds and managed in partnership with DTZ Investors. The fund is aiming to invest up to £500m across the UK in the medium-term.

The fund has previously invested in Clayton Business Centre, a multi-let industrial estate in West London, as well as an industrial and car showroom investment in Enfield.

Mike Hardwick, investment director for property investments at LGPS Central, said: “While the availability of investment opportunities remains constrained we are pleased to have secured a further investment for the fund. The initial investments have all been in greater London, which is a property market that in general has strong fundamentals, with Goodmayes in particularly benefiting from its close proximity to new Crossrail infrastructure. We expect to continue deploying capital into strong assets over the coming months, across the UK”

Sam Brice, director at DTZ Investors, added: “We are delighted to have secured a third investment for the LGPS Central UK Direct Property Fund. Goodmayes Retail Park aligns with the wider fund strategy of investment into strong locations with diverse underlying occupational demand. With the relatively low rental levels across the park, the asset is well positioned to benefit from the low vacancy rates across the retail warehouse sector and demand stimulated by Crossrail-led regeneration. We are actively seeking further opportunities in core markets across the UK as we continue to grow the fund.”

Hampson Wall and Burges Salmon LLP advised DTZ Investors and LGPS Central.