Savills IM targets $490m, for new U.K. retail park fund
Savills Investment Management (Savills IM) is seeking to raise £360 million ($490 million) for its new U.K. retail park strategy.
Straits Real Estate, the real estate investment arm of Singapore-based The Straits Trading Co., and The Land Managers, the real estate investment division of the JL Family Office, are cornerstone investors in the fund.
The fund will seek to acquire retail park assets with relatively low rents, giving preference to food anchors and discount retailer tenants, such as B&M, Home Bargains Food Warehouse, but also bulky operators such as DIY. Savills IM said the fund seeks to exploit the mismatch between the strong operating performance of the value subsector of U.K. retail parks and their relatively high yields compared to other sectors.
“The U.K. retail sector has had a torrid time over the last five years, particularly the high street and shopping center subsectors,” said Harry de Ferry Foster, head of UK at Savills IM, who is r