Tristan Capital Partners’ TIPS 1 income plus real estate debt fund has provided £44 million of senior debt to finance Invesco Real Estate’s acquisition of The Fort Shopping Park in Birmingham.
The 301,070 sq ft park sits on the outskirts of Birmingham and is located close to the M6 (Junction 5), benefitting from a captive population of over half a million within a 20-minute radius.
The park is anchored by Primark, Next, JD Sports and Boots and has benefited from a strong rebound in footfall and renewed leasing activity since the easing of restrictions.
Dan Pottorff, Head of Debt Investment at Tristan, said: “This financing illustrates the core strategy of TIPS One – to back experienced, well-capitalised sponsors, actively managing high quality assets to drive income and capital growth. We are taking a highly selective approach to retail, focussing on opportunities where we are working with established managers with progressive and considered strategies for well-located assets.”
The business plan for The Fort responds to changes in consumer spending, many of which have been accelerated by the pandemic. This includes operational changes, such as smaller units being repurposed for food and leisure operators, as well as further optimisation of the tenant mix. Alternative uses will also be explored to account for urban logistics and click and collect formats.
Ashil Sodha, Director, Debt Investment at Tristan, said: “We are pleased to have supported Invesco Real Estate with debt financing for this acquisition. The rebalancing of capital values and rents across the sector in recent times, coupled with the strong performance of this format of retail through the pandemic, has created compelling investment opportunities for active managers to reposition assets. A wave of new capital is helping reinvogorate dominant retail assets like The Fort, which Invesco Real Estate and its operating partner George Capital are well placed to deliver.”