US TEACHERS’ PENSION FUND TIPPED TO BUY
The Estates Gazette have reported that Grosvenor Estates are in discussions with US Teachers’ Pension Fund, TIAA-CREF about the sale of the Festival Place shopping centre in Basingstoke. The investment price is believed to be just less than £300 million, reflecting a yield of 6.25% – 6.5%.
Other interested investors were reportedly Canada Pension Plan, Lend Lease and Deka; but TIAA-CREF appear to be in pole position.
Grosvenor are rumoured to be trying to strike an agreement to continue to manage the 850,000 development on the Fund’s behalf.
Due to its success over the past decade, Festival Place has become prime UK retail stock, and the interest underlines the fact that overseas investors have an apparent appetite for regional shopping centre assets at present.
CBRE are advising Grosvenor on the sale.
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