LONDON – Property firms Sovereign Land and Strutt & Parker Real Estate Financial Services (SPREFS) are jointly raising a 300 million pound fund to invest in UK shopping centres, the companies said on Monday.
The companies, which are raising the amount from financial institutions, said the Sovereign Land LP fund plans to acquire UK malls valued between 50-100 million pounds, in anticipation of prices bottoming out in the retail property market.
“The UK retail property market will continue to deteriorate in the short term and reach a 20 year low beginning in the second half of 2009,” the companies said in a joint statement.
“There is an outstanding opportunity over the next three years to selectively acquire … a diversified portfolio of high quality shopping centre assets to pre-empt the eventual stabilisation of the UK economy,” they said.
Reporting by Daryl Loo; Editing by Jon Loades-Carter. Read the article “ Property firms to raise $421 mln for retail fund” in Reuters.
Property firms to raise $421 mln for retail fund” in Reuters.