TH Real Estate has completed the acquisition of Thurrock Shopping Park from Hammerson. The property was acquired on behalf of TIAA’s General Account for Â£93 million.
The retail park comprises 274,770 sq ft (25,527 sq m) and totals 19 retail units with 1,600 car parking spaces.
Hammerson purchased the property for Â£64 million in 2012 as part of the Junction Fund Portfolio. Since then they have deployed Â£3 million of capital expenditure to redevelop the cinema site into three new retail units, upgraded the tenant line-up to a more fashion-led retail mix, including securing the UK’s first Nike Outlet on a retail park and achieved planning consent on the development site.
The tenant mix includes an M&S, Asda Living, TK Maxx, Boots, Gap, Nike, Pets at Home, Decathlon, Evans Cycles and Dunelm.
The ownership of a 26 acre site is being retained for development by Hammerson with planning consent for 320 residential units over 18 acres and 7,600m2 of retail and leisure.
The sale price represents a net initial yield of 5.3% and is moderately below the book value as at 31 December 2015.
David Atkins commented:
“I am pleased to announce a further step in our Â£300m disposal programme which highlights our continued focus on rotating Hammerson’s retail platform towards our higher growth assets. Thurrock has shown excellent returns during our ownership and this transaction provides a good opportunity to crystallise a Â£26m profit on cost with further upside expected from the retained development opportunity.”
As part of its retail investment strategy, TIAA seeks to acquire dominant assets in strong and sustainable locations throughout Europe and the UK, utilising TH Real Estate’s asset management capability to add value across its portfolio.
David Turner, Head of TIAA European Investment, said: "With its strong south east location, excellent tenant mix and economic fundamentals, Thurrock Shopping Park met the investment criteria of TIAA. The park offers the potential to add value through both short and long-term asset management initiatives.
"TIAA continues to expand its European and UK portfolio and is focused on assets, sectors and geographies identified for long-term growth and the potential to provide strong risk-adjusted returns."
TH Real Estate was advised by Morgan Williams. Hammerson was unrepresented.