UK Investors Splash $60 MIL On Kent Outlet Mall

LONDON-BP Pension Fund and Co-operative Insurance Society have bought half of BAA McArthurGlen’s designer outlet at Ashford in Kent. The transaction values the centre at more than £80 million ($117 million).

Ashford is the fourth BAA McArthurGlen centre to be converted into a limited partnership with institutional investors, offering them the opportunity to participate in the future performance of the centre alongside BAA McArthurGlen, the joint venture between airports operator BAA and McArthurGlen, the private investment vehicle for US investor J W Kaempfer. In all of these sales, BAA McArthurGlen has retained a stake and acted as ongoing property and partnership manager.

BP Pension Fund and CIS are also investors in other BAA McArthurGlen centres at Cheshire Oaks, near Chester in Cheshire; Swindon in Wiltshire and Bridgend in South wales; and BP Pension Fund also invested alongside CGNU and Equitable Life in BAA McArthurGlen’s centre at Swindon.

At the same time the Ashford project has been refinanced with a new £40 million ($58 million) medium-term loan facility provided by a syndicate led by Bayerische Landesbank, including Westdeutsche Immobilien Bank, Hypovereinsbank and Nationwide Building Society.

The realisation of a 50% stake in Ashford allows BAA McArthurGlen to offer additional interests in the centre to the wider investor market. BAA McArthurGlen has had discussions with a number of interested parties and expects to complete further realisations at Ashford within the next twelve months.

BAA McArthurGlen’s financial and property advisors on the transaction were Jones Lang LaSalle while DTZ Corporate Finance represented the investors.