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Rockspring fully invests £342m UK fund

The pan-European property fund manager has made the final allocation from its second UK core-plus offering with the purchase of a shopping center in Liverpool.

Rockspring Property Investment Managers, the London-based real estate manager, has fully invested its UK core-plus offering, UK Value 2. The firm has invested 95 percent of capital and has made the final allocation from the fund after acquiring a high street retail block in Liverpool for £38.4 million.

The £342 million fund closed last February after Rockspring raised the targeted capital from 11 investors, comprising institutions from Australia, Finland, Germany, the UK and Denmark. It took Rockspring only eight months to reach the final close, a record for the institution.

“The swift deployment of capital into the UK commercial real estate market on behalf of UK Value 2 is testament to Rockspring's track record of sourcing core-plus and value-add assets across the UK,” said Richard Bains, Rockspring partner and fund manager of the UK Value series.

UK Value 2 has a duration of seven years and a target IRR of 12.5 percent per annum.

The latest acquisition, Clayton Square shopping center, reflects a net initial yield of 6.25 percent and was acquired from Infrared Capital Partners, the private infrastructure and real estate investment management firm.

The retail scheme is spread over a total area of 140,193 square feet including 17 retail units, which are predominantly outward, facing but include one covered mall, one restaurant and a gym.

“The acquisition of Clayton Square in Liverpool's thriving city center compliments the other retail assets within our portfolio and is in line with the fund's core-plus risk profile.  The repositioning of this asset has firmly re-established it as a prime retail asset within Liverpool allowing for rental growth moving forwards as well as potential to add value through further asset management initiatives,” added Bains.

The firm previously invested in Bramley shopping center in Leeds and Guildhall, an office and retail investment in Glasgow, for a total of £47.5 million. The firm also acquired the Maskew Retail Park in Peterborough for £37 million.

KLM represented Rockspring and Strutt and Parker acted on behalf of Infrared on the transaction.