M&G Real Estate has made one of the largest retail investments this year, buying a 50 per cent stake in Fort Kinnaird retail park for £167.25 million.
The property giant will now embark on a joint venture with the Hercules Unit Trust (HUT) for the 560,000sq ft Edinburgh retail park, currently valued at £334.5 million.
“Our partnership at Fort Kinnaird underlines our commitment to prime retail, which continues to prove resilient to competition from e-commerce and reflects our strategy of investing in secure assets with long-term prospects for income and capital appreciation,” M&G head of UK retail John Duxbury said.
It purchased its stake in Fort Kinnaird, which boasts an annual footfall of 14 million, from The Crown Estate which was previously in a joint partnership with HUT called the Gibraltar partnership.
The Gibraltar partnership, which has now expired, also owned the Gallagher Shopping Centre in Cheltenham.
Following the partnership’s suspension, The Crown Estate has now acquired HUT’s 50 per cent stake in the 153,000 sq ft scheme to take full control.
The Crown Estate’s regional director Hannah Milne said: “We have enjoyed a successful partnership on Fort Kinnaird, working alongside HUT and the British Land team.
“We are now focused on Gallagher Shopping Park; a strong scheme in a great location where we have invested alongside our partners over a number of years to help improve the experience for shoppers.
“We are delighted to have acquired the scheme in full and look forward to continuing to build on its success.”