Hana and KAIM buy Gallagher shopping park, Wednesbury
In the biggest out-of-town investment deal of 2018, KKR has sold its retail park at Junction 9 on the M6 to Hana Financial Investments and Korea Asset Investment Management for £175m.
The park was acquired by KKR’s Real Estate Opportunity fund together with its operating partner Quadrant Estates in 2014 by piecing together three separate ownerships at a cost of £123m.
In addition to amalgamating the three distinct parks to create one homogeneous shopping park, Quadrant consolidated Curry’s and PC World, sub-divided 49,000 sq ft of vacant space and developed 33,000 sq ft of new space including four new restaurants. All the units were pre-let to retailers including M&S, JD Sports, Sofology, DFS, Nando’s, Costa and Smash Burger at rents of up to £45 psf. This increased the rent roll to £2m pa as well as driving increases in customer numbers and frequency of visits.
Guillaume Cassou, head of European real estate at KKR, said “We backed a fundamentally good asset in need of repositioning and Quadrant implemented an intensive business plan over four years that has resulted in a great end product, which we have now sold to long term income-focussed capital..”
KKR and Quadrant were represented by JLL and Wilkinson Williams. Hana and KAIM were advised by Montagu Evans.