HUT teams up with Crown for £680m venture

Hercules Unit Trust (HUT) has teamed up with the Crown Estate to form a £680m joint venture. British Land, which owns a 36.6% stake in HUT and manages the trust, will act as property adviser to the new limited partnership. The 50:50 venture incorporates three properties: The Crown Estate’s 246,000 sq ft Gallagher retail park in Cheltenham and 140,000 sq ft Shires retail park in Leamington Spa and HUT’s 550,000 sq ft Fort Kinnaird Shopping Park in Edinburgh. The off-market transaction gives the Crown Estate a significant interest in one of the UK’s premier out-of-town retail locations and access to HUT’s’ specialist management team. HUT’s unit holders will also gain exposure to two new retail parks that, together with Fort Kinnaird, offer a number of asset management opportunities. HUT is currently in the final stages of completing a major redevelopment programme at Fort Kinnaird which will include a new 60,000 sq ft Marks & Spencer store. CB Richard Ellis advised both HUT and The Crown Estate.