Henderson Global Investors has exchanged on the £365m purchase of a portfolio of three designer factory outlets in the UK and has set up a fund for the purchase.

Henderson raised £181m of equity to buy the three outlets, including Cheshire Oaks in Ellesmere Port, Cheshire. The fund will be called UK Outlet Mall Fund and debt came from Bayerische Landesbank. Henderson and MacArthur Glen have invested in the closed-ended fund, which has a 10-year life. MacArthur Glen will remain as manager.

Henderson placed the portfolio under offer at around £371m in April. It then renegotiated and is thought to have paid £364.5m – a net initial yield of 7.1% – in this year’s largest retail deal.

Henderson is buying the portfolio from a partnership of UK institutions, including Morley, and already owns several factory outlets in Europe managed by McArthurGlen in its European Outlet Mall Fund.

Andrew Rich will be the fund manager. James Darkins, managing director of property at Henderson, said: ‘There is liquidity in the market providing both buyers and sellers are prepared to take a realistic approach to pricing.’

CB Richard Ellis advised the vendor.

Cushman & Wakefield advised Henderson.

http://www.propertyweek.com, 01.08.08