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HSBC Specialist Investments sells Victoria Retail Park

HSBC Specialist Investments has sold Victoria Retail Park in Nottingham to The Crown Estate for GBP56.87m, representing a 5.45 per cent net initial yield.

The property comprises 180,000 square feet and ten retail units.

Since purchase, lettings to Boots and Pets at Home have completed.

Victoria Retail Park was the first acquisition made by HSBC Specialist Investments’ regulated subsidiary, HSBC Specialist Fund Management, acting on behalf of the HSBC European Active Real Estate Fund, and was completed in July 2009.

The fund invests in value added real estate in target countries throughout Europe. The fund was raised in 2009 with an investment capacity of EUR1bn, of which approximately 25 per cent has been committed to date. Target sectors are retail (shopping centres/retail parks) and multi-let industrial and offices. The UK remains a core target for investment activity, alongside selected continental European countries.

Recent acquisitions, apart from Victoria Retail Park, include industrial property near Heathrow and several industrial portfolios in the UK.

James Cooksey of The Crown Estate says: "We are delighted to have concluded the acquisition of Victoria Retail Park, Nottingham, which is absolutely in line with our strategy of investing in quality assets that combine a strong underlying income stream with asset management potential.”

Neville Paterson, director in HSBC Specialist Investments’ European property team, says: "The park was the fund’s first UK deal and was acquired in July 2009, offering substantial value added opportunity. Now that further key tenants have been secured, the property’s future return profile is less suited to a value addition fund, and it was decided to capitalise on the buoyant investment market for this kind of asset.”

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