Henderson Global Investors, on behalf of the GBP1bn Henderson Retail Warehouse Fund, has completed the sale of a 25 per cent stake in the Brewery in Romford to Prupim for GBP44.25m.  

The price reflects a net initial yield of 6.06 per cent for Prupim.
 
The scheme is let to UK retail and leisure operators including Sainsbury’s, Boots, Gap, JD Sports, Bank, Vue cinemas and TK Maxx.
 
The retail and leisure scheme, which comprises 530,000 square feet, will continue to be managed by Henderson.
 
The asset is the fund’s largest asset and following sales undertaken from 2007 to 2009, coupled with the repayment of debt, the fund’s weighting to this scheme had increased from 14 per cent to 18 per cent. This part sale re-aligns the fund’s weightings while also creating capital which can either be used for new investments or recycled back into existing assets.
 
Michael Neal (pictured), fund manager of the Henderson Retail Warehouse Fund, says: “The asset has performed very well for the fund, particularly during the downturn, having provided the fund’s strongest weighted contribution to performance over the three years to 31 December 2009.

“Our specialist retail warehouse asset and investment management expertise backed by dedicated leading edge retail research continues to position the fund in good shape having delivered returns in excess of 60 per cent over the last 12 month. This sale is representative of the fact that liquidity still exists for good quality assets in the current market.”

Robert MacQueen, investment manager at Prupim adds: “The 25 per cent stake in the Brewery, Romford has been acquired for one of Prupim’s client funds as it fits our strategy of securing prime retail assets with defensive qualities in what continues to be a challenging occupier market.”

Cushman & Wakefield and Morgan Williams advised Henderson on the disposal. Prupim was represented by King Sturge.