The Midlands-based LGPS fund’s Property authorised contractual scheme, which launched last year with two London acquisitions, has added East London-based Goodmayes Retail Park to its portfolio.
The LGPS pool, which looks after the assets of eight Midlands-based LGPS funds, said the retail park in Chadwell Heath could benefit from “significant regeneration” in the area, and is in “close proximity” to the Goodmayes and Chadwell Heath stations on the Elizabeth Line.
The property fund, developed with the pool’s partner funds and managed by DTZ Investors, has previously invested in a West London industrial estate and a car showroom in Enfield, and has a medium-term target to invest up to £500m across the UK.
Property investment consultants Hampson Wall and law firm Burges Salmon advised the LGPS pool on the acquisition.
LGPS Central property investments director Mike Hardwick said: “While the availability of investment opportunities remains constrained, we are pleased to have secured a further investment for the Fund. The initial investments have all been in greater London, which is a property market that in general has strong fundamentals, with Goodmayes in particular benefitting from its close proximity to new Crossrail infrastructure. We expect to continue deploying capital into strong assets over the coming months, across the UK.”
DTZ Investors director Sam Brice added: “We are delighted to have secured a third investment for the LGPS Central UK Direct Property Fund. Goodmayes Retail Park aligns with the wider fund strategy of investment into locations with strong underlying occupational demand. “With the relatively affordable rental levels across the park, the asset is well positioned to benefit from the low vacancy rates across the retail warehouse sector and demand stimulated by Crossrail-led regeneration. We are actively seeking further opportunities in core markets across the UK as we continue to grow the fund.”
