Standard Life acquires Gateway Shopping Park

Standard Life Investments has acquired The Gateway Shopping Park in the town of Trowbridge, Wiltshire, South England. The freehold acquisition cost the group’s UK property fund around £20.675million and was purchased from the developers,

Parkridge. The Gateway shopping development which was completed in 2009 comprises of 6 retail warehouse spaces totalling 56,630 sq ft and a 226 space car park. The retail units are occupied by brands such as Next, New Look, Argos, Boots and Brantano.

Nigel Chapman, Fund Manager of the UK Property Fund of Standard Life, said: ‘We are delighted that we have been able to increase the Standard Life Investments UK Property Fund’s exposure to prime retail real estate.’ He continues, ‘The Gateway Shopping Park provides good diversification in terms of income, reduces the cash balance held in the Fund and provides an attractive yield for investors.’

Following the acquisition the cash position of Standard Life’s fund has reduced by 10.7% and the purchase price represents an initial yield of 5.7%.

Standard Life has property assets worth 9.8billion in Europe, making it one of the largest property investors in the continent. The UK Property Fund’s investment objective is to provide a return from capital appreciation and income over the longer term. The current policy of the Fund is to invest primarily in the UK commercial property.

Unlike many retail warehouse developments the shopping park is located in the centre of town, with Trowbridge just 12 miles from Bath and 19 miles from Bristol.

Parkridge will retain the Courtyard element of the Gateway scheme which comprises mixed retail, restaurants and residential plots.