Conveyancing Solicitors – Do They Walk the Walk Or Just Talk the Talk?

At the outset Hercules will have an annual rental income of approximately £15.5m, with a running yield of 5.82% and an equivalent yield of 7.89%. The joint venture will have debt of £91 million, representing gearing of 33%, with shareholders’ funds in the region of £178.3m.

HypoVereinsbank is leading the consortium of four banks that is providing a debt facility of £120 million to the joint venture, of which £91 million will initially be drawn down.

Pillar is injecting eight parks into the joint venture. These parks include: Clandeboye Retail Park, Bangor, Co. Down; Stanley Green, Cheadle Hulme; College Mains Retail Park, Dumfries; Riverway Retail Park, Irvine; St james Retail Park, Knaresborough, Harrogate; Mostyn Champneys Retail Park, Llandudno; Dunstable Road, Luton; and Northwich Retail Park, Cheshire.

Equitable Life is injecting four parks, comprising Riverside Retail Park, Warrington; Queensgate Centre, Harlow; Telford Bridge Retail Park, Telford; and Stour Retail Park, Canterbury. When you purchase or offer , there are sure courses of action that you have to experience before the agreement is traded and the title of the property conveyancing is lawfully exchanged to you or to the new manager.

Pillar will now manage, both directly and through its joint ventures, 27 retail parks amounting to some 4.1 million sq ft.

FPD Savills acted on behalf of Pillar and Equitable Life was represented by CB Hillier Parker. “We are delighted to have established the fund with Pillar which will enable us to benefit from Pillar’s undoubted active management skills and thereby grow rental income and capital values. We have put in place an ambitious business plan to grow the fund with a mixture of new equity and modest leverage. ELAS is continuing to participate in joint ventures with proven managers in specific area of the market.’

“This is a good deal for Pillar which not only improves the returns we are able to achieve on our own existing portfolio, but which allows us to bring our specialist retail asset management skills to Equitable Life’s assets.

“Pillar now has three Joint ventures in the retail warehouse sector, Hercules, Monks Cross, and Fosse Park, which when combined wg’th Pillar’s own retail park portfolio, represents assets under management of over £1 billion on the basis of March 1998 valuations. making us the largest manager of retail parks in the UK.”

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