Savills Investment Management (Savills IM), the international real estate investment manager, has launched a UK retail park strategy, with a target capital raise of £360m.
The fund will seek to acquire retail park assets with relatively low rents, specifically food anchors and discount retailer tenants, such as B&M, Home Bargains Food Warehouse, and bulky operators such as DIY.
Savills said it was targeting the sub-sector due to the resilience it demonstrated in the face of online shopping, as sales largely consist of daily necessity and value-oriented items.
The fund will be managed by Harry de Ferry Foster, head of UK at Savills Investment Management, who also manages the award-winning Charities Property Fund, supported by director Danny Al Dilmi and team.
“The UK retail sector has had a torrid time over the last five years, particularly the high street and shopping centre sub sectors. This new fund is targeting assets in a sub sector which has been overlooked and oversold, but has proven its resilience to the headwinds facing the sector,” said de Ferry Foster. “This is a good opportunity to secure assets with a high and secure income yield and we believe it will be very attractive to investors.”
