AREA invests £50m in The Junction Fund

18.06.2009

FSP is pleased to have advised AREA Property Partners on their investment in The Junction Fund.

Capital & Regional and Aviva Investors’ The Junction Fund comprises 11 retail warehouse parks across the UK, occupied by tenants including B&Q, Comet and Homebase. The existing unit holders contributed a further £15m in the £65m equity raising exercise.

Strategic asset management of the portfolio will be controlled by AREA, while Capital & Regional will continue as property managers, overseeing day to day management, leasing and development activity.

Instructed in February by AREA Property Partners, formerly Apollo Real Estate, FSP delivered 11 Pre-Acquisition Due Diligence reports in relation to the deal.

Krysto Nikolic, Project Manager for AREA Property Partners, comments “FSP has very helpfully set out the trading risks and opportunities in this investment opportunity. AREA would be happy to work with FSP again.”

FSPs Pre-Acquisition Due Dilligence reports include;

  • Critical assessment of current trading performance and quantification of headroom for growth
  • Prioritisation of future opportunities to increase value through proactive asset management
  • Risk Assessment, including;
    • Current rent affordability
    • Prospective risk due to retailer failure or competitive threat
    • Future retailer demand.

FSP techniques include;

  • Retail audits
  • Passing and Sustainable rents investigation
  • Financial assessments of tenants
  • Shopper surveys and profiling
  • Competition and development research
  • SWOT analyses

To contact FSP about this story, or any of our products, please email us, or call on 01494 474740.

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A very useful way of keeping up to date with what's going on in retail.

Charles Denton
Property Director
Cornish Bakehouse
Retail Consultancy