Hines acquires trio of UK retail parks
Global investment manager Hines has expanded its UK retail park portfolio with the acquisition of three fully-leased assets, totalling approximately 438,000 sq ft.
The schemes, which were acquired on behalf of the Hines European Core Fund (HECF), comprise Nugent Shopping Park in Greater London, Altrincham Retail Park in Manchester, and Straiton Retail Park in Edinburgh.
Nugent Shopping Park is a 139,000 sq ft scheme located in Orpington, anchored by a full-line M&S store and occupied by a range of leading national retailers. The asset benefits from a large London commuter catchment, limited competing retail park supply, and attractive rental growth prospects.
Spanning 228,000 sq ft, Altrincham Retail Park serves a large catchment in North West England and is occupied by retailers including Lidl, Boots, B&Q, Currys, B&M, Pets at Home, and TK Maxx. The fully-leased asset serves an affluent customer base and offers attractive rental growth potential.
Straiton Retail Park extends to 71,000 sq ft and is anchored by Home Bargains, The Food Warehouse, and Dunelm. The asset is supported by a strong tenant mix and regional catchment, as well as stable income characteristics.
Hines said the acquisitions come as UK retail parks benefit from a scarcity advantage, with new development at historic lows and resilient occupier demand having supported some of the strongest rental growth of any retail format over the past five years. According to Hines research, UK retail park vacancy has remained below 5%.
Alfonso Munk, global head of investment management at Hines, said: “We see UK retail parks as an increasingly compelling part of a diversified core portfolio.
“Limited new supply, strong retailer demand, and attractive income characteristics create a combination that has been difficult to replicate elsewhere in the retail market. These acquisitions allow us to build meaningful exposure in three of the UK’s strongest metropolitan markets.”
Ross Blair, head of Western Europe at Hines, added: “These acquisitions demonstrate the strength of our local sourcing capabilities and our focus on creating value through active management.
“Success comes down to picking the right assets and executing well. We believe these retail parks combine strong fundamentals with clear opportunities to create value over time.”