BROCKTON CAPITAL AND PRADERA LAUNCH JV TO ACQUIRE PORTFOLIO OF RETAIL PARKS
Brockton Capital LLP and Pradera UK Ltd have formed a joint venture partnership to selectively acquire a portfolio of retail parks throughout the UK The partnership has jointly committed sufficient equity to enable a gross portfolio value of approximately £250m to be acquired, which aims to generate good returns on existing assets with solid income.
Tony Edgley, a Partner at Brockton said: “We don't underestimate the seismic changes that are occurring in the retail sector nor the heightened risks, but ultimately, retailers will gravitate to affordable locations that deliver sustainable profits. Consumers will shop where the offer is modern, sympathetic, multi-channel and convenient. Stock selection is everything. Our partners in the Pradera team bring both an invaluable historical perspective on how the sector has evolved to its current generation of parks, but more importantly a clear view on the inevitable modernisation that needs to occur in the more ageing retail warehouse park stock."
Neil Varnham, a Director at Pradera said: “Retail warehousing will prove to be one of the more resilient property sectors as it adapts and flexes to accommodate changing retailers requirements in the future. With our partners at Brockton, we are aiming to push the boundaries on growing the appeal of retail parks through design, tenant mix and the integration of additional complimentary uses.”
The partnership has also completed its first acquisition, the 150,000 sq. ft. Cardiff Gate Retail Park, north east of the City centre. Anchored by B&Q and three furniture outlets including DFS and a McDonald’s drive through, the park functions well as a classic bulky goods park.
Richard Gore, a Director at Pradera said: “We are delighted to have secured our first asset for the JV so quickly. Cardiff Gate Retail Park is already a successful asset offering good quality solid income and has the ability to improve still further thereby repositioning itself within the local community and the hierarchy of retail parks within the City. The partnership will look to take on similar projects where it can enhance the current retail park offer and attract an excellent portfolio of tenants.”
Deutsche Postbank AG (London Branch) has provided senior debt to the partnership. Savills acted for the vendor and Edgerley Simpson Howe acted for the Brockton Pradera partnership.