LONDON-Pillar Properties and Hercules Unit Trust have completed euro 1.2 billion ($1.5 billion) of deals across four retail warehouse parks, including Fosse Park, generally considered Britain's most successful. HUT, Britain's biggest specialist unit trust, sold Fosse Park in Leicester for euro 445.4 million ($580.2 million) to clients of REIT Asset Management. The scheme was bought by Hercules in 2001. The 416,190-sf park is anchored by Marks & Spencer, Next and Bhs. Other tenants include leading high street retailers such as Argos, Burton and Thorntons.

"All properties within the Hercules portfolio are under constant review," reports Pillar director Valentine Beresford. "Following a period of intensive asset management, we decided to offer Fosse Park to the market and to reinvest the money elsewhere within the sector."

In keeping with that strategy, HUT bought Parkgate Retail Park in Rotherham from the Stadium Group for euro 298 million ($388 million) at a yield of 5.3%. As part of the same transaction, Stadium will acquire Newport Retail Park from Hercules for euro 87 million ($113 million), at an equal yield.

Parkgate is a 562,000-sf shopping park one mile north of the center of Rotherham. The park has 34 tenants including Marks & Spencer and Homebase. Newport Retail Park is 203,000-sf center let to 18 tenants including Staples and Kwik Save. Concerning the Parkgate deal, Beresford says that, "We have already identified further asset-management initiatives and are confident that we can realize additional value."

Pillar Properties has also sold Manchester Fort retail park for euro 242 million ($315.2 million) to the Universities Superannuation Scheme, representing a net initial yield of 4.5%. Manchester Fort, which is being developed in two phases, will provide more than 320,500 sf. Tenants in the 228,000-sf Phase I include George at Asda, Boots, Comet, Sports World and Lunn Poly.

Phase II, which will provide more than 90,000 sf, is due to open in autumn 2005. Prelets have already been made to retailers including Halfords and Pizza Hut. A statement by Pillar adds that "the disposal is in line with the Pillar's strategy of disposing of assets once they are developed and the majority of space has been let."