Crown Estate completes Fosse Park purchase and establishes joint venture with Gingko Tree

We have completed the purchase of Fosse Shopping Park in Leicester for £345.5m and established a partnership with Gingko Tree Investment Ltd.

14 August 2014

Fosse Park, Leicester

Both organisations will take a 50% stake in Fosse Park through an English Limited Partnership, with The Crown Estate managing the asset on behalf of the partnership.

Paul Clark, Director of Investment said: “Our critical mass and specialist skills in the retail park sector have been key in helping us secure this landmark partnership, which brings our total third party funds managed in joint ventures to over £1 billion and further strengthens our ability to invest across our core sectors.”

Fosse Park attracts over eight million shoppers a year and at 560,000 sq ft is one of the largest in the UK. Current tenants include: M&S, GAP, New Look, Clarks, Boots, Next, River Island, Argos, DFS, Thorntons and Costa Coffee.

The acquisition is the largest in The Crown Estate’s history and further strengthens our position as one of the UK’s leading owners of prime regional retail property. Our portfolio also includes 16 retail parks in places such as Newcastle, Aintree, Nottingham, Swansea, and Cheshire with a total capital value of over £1.2 billion.

“Our critical mass and specialist skills in the retail park sector have been key in helping us secure this landmark partnership”

Paul Clark, Director of Investment and Asset Management

James Cooksey, Head of Regional Portfolio said: “Fosse Shopping Park is one of the best assets of its kind, combining a prime location, with both scale and opportunities to enhance performance through active management. At Fosse Park we intend to bring the same vision and progressive approach to management as we are known for across our regional retail holdings and in London’s West End.”

Our investment strategy focuses on four core sectors, where we benefit from critical mass and the expertise needed to enhance existing assets to outperform the market: prime regional retail, London’s West End, strategic land, and offshore wind. We are unable to borrow and fund investment activity across our core sectors through capital trading and the formation of strategic partnerships.

We are an independent commercial business valued at nearly £10 billion and established by Act of Parliament. 100% of our annual revenue profits are returned to the Treasury for the benefit of the public finances; over the last 10 years we returned over £2.2 billion to the Treasury.

On the purchase, Wilkinson Williams LLP and BNP Paribas Real Estate advised the purchaser and Savills advised the vendor.